Question

An investor buys a call at a price of $6.30 with an exercise price of $58. At what stock price will the investor break even on the purchase of the call?

Answer 1

Break even price = $64.3

Step-by-step explanation:

To get the break even price, we simply add up the call price with the exercise price

Call price = $6.3

Exercise price = $58

Break even price = $6.3 + $58 = $64.3