Series 7 - General Securities Representative Exam

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Mr. John wrote 20 May 195 Calls for 17.30 each in BCD Company Stock. BCD currently trades at $194.35 per share. What is Mr. John's break-even point?

177.7
A
177.05
B
211.65
C
212.30
D

Explanations

He sold the calls. His breakeven is the strike price of the call + the amount of premium he received. $212.30

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