SIE practice questioneasyBreakeven points
An investor buys a call with a $30 strike for $2. What is the breakeven stock price at expiration?
- A$30
- B$32✓ Correct answer
- C$28
- D$34
Explanation
Why B — $32
Breakeven for a long call = strike price + premium = $30 + $2 = $32. The other values are incorrect.
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