You purchase one JNJ 75 call option for a premium of $3.Ignoring transaction costs, the break-even price of the position is
A)$75.
B)$72.
C)$3.
D)$78. +75 + $3 = $78.

Question

Quizplus · Accepted Answer

The break-even price for a call option is the strike price plus the premium paid. In this case, the strike price is $75 and the premium paid is $3, so the break-even price is $78. Therefore, the correct answer is D.

You Purchase One JNJ 75 Call Option for a Premium