To reach breakeven on a call purchase held to expiration,the stock price must exceed the exercise price by at least the amount of the call premium.

Question

Quizplus · Accepted Answer

This is true because the breakeven point for a call purchase is the exercise price plus the premium paid for the option. The stock price must exceed this breakeven point in order for the investor to make a profit.

To Reach Breakeven on a Call Purchase Held to Expiration,the