A 6-month call option on 100 shares of SRS Corp stock is selling for $320 The strike price for the option is $80 The stock is currently selling at $79 per share. Ignoring brokerage fees, what price must the stock achieve to just cover the expense of the option? If the stock price rises to $85, what will the net profit on the option contract be?
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- EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT