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Calculate the break-even price

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-Aurizon Holdings Limited shares currently trade at 5.21$. An investor enters into a long-call option on Aurizon with an exercise price of 5.8$ per share in four months, and a premium of 0.28$ per share.

-a. Calculate the break-even price for the short-call position

-b. Draw a fully labeled diagram of the long-call and short-call positions

-c. At what minimum stock price will the option buyer exercise the option on the expiration dateQuestion 1a please write the formula that i can follow step by step question 2b please draw and explain the diagram clearly question 3c please write the formula and explain clearly.

Reference no: EM133061574

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