What is the break even stock price at expiration

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Use the following stock info to answer questions 1-2 A stock has a call options available at an exercise price of $30 for a cost of$2.89. The cost of put options at this same exercise price is $2.15. The price of the underlying stock is currently $30.

1. An investor buys one call and holds it until expiration. What is the break even stock price at expiration? A. 32.89 B. 32.15 C.30 D there is no break even E. none of above

2. An investor writes a covered call. At expiration stock price is $27 what is the investor profit? A. -289 B. -11 C. 289 D. 2989

Reference no: EM131498021

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