What would be the breakeven price on stock for strategy

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Reference no: EM132059542

BBY = $51. You hold 200 shares purchased at $48 a few months ago. You're thinking that the stock is going to "take a breather" for the next few months. What kind of contract should you buy/sell?

Say you execute this contract with X = $52 at $3.50 per share. The stock rises to $54 and your position is closed out. What is your profit or loss? What would be the breakeven price on the stock for this strategy?

Reference no: EM132059542

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