You purchase one LLY 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.

Question

Quizplus · Accepted Answer

The break-even price for a call option is calculated by adding the premium paid to the strike price. Here, the strike price is $75 and the premium paid is $3, so the break-even price is $75 + $3 = $78.

You Purchase One LLY 75 Call Option for a Premium