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Calculate the breakeven point makes at the expiration date

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Reference no: EM132710191

Problem 1: Currently, a call option on Minelli Enterprises Limited's ordinary share is selling for $1.20 (option premium). The exercise price is $21.00. Assuming the stock price at expiration is $25.50, calculate the breakeven point, profit, or loss, the option holder makes at the expiration date.

Reference no: EM132710191

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