What is the break-even point for the investor

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An investor purchases a long crude oil call at a price of $2.50. The exercise price is $42.00. If the current spot price of crude is $40.95, what is the break-even point for the investor? (Hint: Break-even point is the stock price at which the investor will have exactly zero profit or loss. Be sure to consider the effect of the option premium.) Show work

Reference no: EM131872203

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