SIE practice questionmediumBreakeven point
A customer buys an XYZ Jan 40 call at $3. What is the breakeven stock price at expiration?
- A$40
- B$37
- C$43✓ Correct answer
- D$3
Explanation
Why C — $43
A call buyer's breakeven is strike plus premium ($40 + $3 = $43). The other values reflect misunderstandings of option pricing or ignore the premium.
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