What is the investors break even point
Problem:
An investor buys 1 XYZ May 60 call at 3.5.What is the investor's break even point?
What is his maximum potential gain? why?
What is the investor's maximum potential loss? Why?
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What is the investor's break even point? What is his maximum potential gain? why?
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1) What is the exercise value of the call option? 2) What is the premium on the option?
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