What stock price would the investor break even on investment

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Reference no: EM131996120

Basic Call Option

An investor purchases one European call option contract on a stock for $2.60. The current stock price is $45.74 and the strike price is $46.

(a) If the stock price goes to $50, what is the profit/loss from the option contract?

(b) At what stock price would the investor break even on his investment?

Reference no: EM131996120

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