An Investor Is Considering Buying 500 Shares of ABC Company

Multiple Choice

An investor is considering buying 500 shares of ABC Company at £32 per share. Analysts agree that the firm's share price may increase to £45 per share in the next 4 months. As an alternative, the investor could purchase a 120- day call option at a strike price of £30 for £5,000. At which share price would the investor break even?

A) $45.
B) $42.
C) $35.
D) $40.