Multiple Choice
The premium on a euro call option is $.02. The exercise price is $1.32. The break-even point is ____ for the buyer of the call, and ____ for the seller of the call. (Assume zero transactions costs and that the buyer and seller of the put option are speculators.)
A) $1.30; $1.30
B) $1.34; $1.30
C) $1.30; $1.34
D) $1.34; $1.34
Correct Answer:
Verified
Correct Answer:
Verified
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