header bg

Scan QR code or get instant email to install app

Question:

An analyst sells a call option for $7 on a stock that he already owns. Assuming that the exercise price of the option is $88 and that the stock currently trades at $86, her breakeven point on the strategy is closest to:

A $79.
explanation

Breakeven point of a covered call strategy = S − C = 86 − 7 = $79

Comments

Leave a Reply

Your email address will not be published.

*