Question: A European call option is written on 62,500. The strike price is $1.40/, and the option premium is $1,875. What is the breakeven price of

A European call option is written on £62,500. The strike price is $1.40/£, and the option premium is $1,875. 



What is the breakeven price of this call?

Step by Step Solution

3.41 Rating (154 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To find the breakeven price of a call option we need to add the strike price ... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!