A call option is selling at the strike price of $500, with a premium on the option of $50. If the investor wants to attain break even at the time maturity, what must be the share price on maturity? A. $450 B. $400 C. $550 D. $551

A call option is selling at the strike price of $500, with a premium on the option of $50. If the investor wants to attain break even at the time maturity, what must be the share price on maturity? A. $450 B. $400 C. $550 D. $551

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter5: Financial Options

Section: Chapter Questions

Problem 4P: Put–Call Parity The current price of a stock is $33, and the annual risk-free rate is 6%. A call...

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Question

A call option is selling at the strike price of $500, with a premium on the option of $50. If
the investor wants to attain break even at the time maturity, what must be the share price
on maturity?
A. $450
B. $400
C. $550
D. $551

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