You purchase one IBM 70 call option for a premium of $6.Ignoring transaction costs,the break-even price of the position is
A)$98
B)$64
C)$76
D)$70
E)none of the above

Question

Quizplus · Accepted Answer

The break-even price can be calculated by adding the strike price and the premium paid for the option. In this case, the strike price is 70 and the premium is $6. Therefore, the break-even price is $76 (70 + 6). So, the correct option is C.

You Purchase One IBM 70 Call Option for a Premium