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The premium on a pound call option is $0.03 per unit. The exercise price is $1.60. The break-even point is ____ for the buyer of the call, and ____ for the seller of the call. A. $1.63 for the buyer of the call, $1.63 for the seller of the call B. $1.57 for the buyer of the call, $1.63 for the seller of the call C. $1.57 for the buyer of the call, $1.57 for the seller of the call D. $1.63 for the buyer of the call, $1.57 for the seller of the call

The premium on a pound call option is $0.03 per unit. The exercise price is $1.60. The break-even point is ____ for the buyer of the call, and ____ for the seller of the call. A. $1.63 for the buyer of the call, $1.63 for the seller of the call B. $1.57 for the buyer of the call, $1.63 for the seller of the call C. $1.57 for the buyer of the call, $1.57 for the seller of the call D. $1.63 for the buyer of the call, $1.57 for the seller of the call

Essentials Of Investments
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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The premium on a pound call option is $0.03 per unit. The exercise price is $1.60. The break-even point is ____ for the buyer of the call, and ____ for the seller of the call.

A. $1.63 for the buyer of the call, $1.63 for the seller of the call

B. $1.57 for the buyer of the call, $1.63 for the seller of the call

C. $1.57 for the buyer of the call, $1.57 for the seller of the call

D. $1.63 for the buyer of the call, $1.57 for the seller of the call

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