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In Early September, Bubba Buys 100 Shares of XYZ for $83

Question 363

Multiple Choice

In early September, Bubba buys 100 shares of XYZ for $83 per share and simultaneously writes one XYZ March 90 call for $4. What is the price for XYZ stock at which Bubba will breakeven?


A) $94
B) $87
C) $86
D) $79

Correct Answer:

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