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Suppose a Stock Is Currently Priced at $65 Per Share

Question 18

Multiple Choice

Suppose a stock is currently priced at $65 per share, a July 60 call has a premium of $8, and a July 70 put has a premium of $7. If you wanted to sell this stock above the current market price using options, at what future stock price would a strategy of selling the stock using options just break even with simply selling the stock today? (Ignore brokerage commissions.)


A) 57
B) 58
C) 72
D) 73

Correct Answer:

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