n October 25, Mr. Smith purchased 5 listed XYZ Cor poration July 50 calls and paid a $3 premium on each call. The current market price of X YZ Corporation is $48 per share. What would the breakeven point be for Mr. Smith per option? A. $45 B. $48 C. $53 D. $58

n October 25, Mr. Smith purchased 5 listed XYZ Cor poration July 50 calls and paid a $3 premium on each call. The current market price of X YZ Corporation is $48 per share. What would the breakeven point be for Mr. Smith per option? A. $45 B. $48 C. $53 D. $58

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

On October 25, Mr. Smith purchased 5 listed XYZ Cor

poration July 50 calls and paid a $3

premium on each call. The current market price of X

YZ Corporation is $48 per share.

What would the breakeven point be for Mr. Smith

per option?

$45

$48

$53

$58

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