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SIE: Options
SIE practice questioneasyBreakeven points

An investor buys a call with a $30 strike for $2. What is the breakeven stock price at expiration?

  1. A$30
  2. B$32✓ Correct answer
  3. C$28
  4. 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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