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Calculate the break-even point for the long position

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Reference no: EM133060855

a) Discuss and explain how options are superior to Futures, in the context of risk management.

b) A Call option on Woolworths' stock is prices at $1.25 with the strike price of $41.50. Calculate the "break-even" point for the long position. What is the immediate pay-off, if the stock price of $43.75 is materialised?

Reference no: EM133060855

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