SIE practice questioneasyBreakeven points
What is the breakeven point for a long call?
- ACurrent market price
- BStrike price minus premium paid
- CPremium paid only
- DStrike price plus premium paid✓ Correct answer
Explanation
Why D — Strike price plus premium paid
Breakeven is determined by adding the premium to the strike price. B describes a put, C and D ignore integral parts of the breakeven calculation.
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