What is the breakeven stock price at the expiration date

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Reference no: EM131893916

1. Ten put option contracts are written with a strike price of $95 and an option premium of $3.87. If the stock price at expiration is $88.16, what is the profit from this transaction?

a. $710

b. $3870

c. $2430

d. $-3160

e. $-2970

2. A call option is priced at $4.31 and has a strike price of $75. What is the breakeven stock price at the expiration date?

a. $75.00

b. $79.31

c. $78.32

d. $70.69

e. $82.63

Reference no: EM131893916

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