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

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Reference no: EM133060775

-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.

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

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

-At what minimum stock price will the option buyer exercise the option on the expiration date?

Reference no: EM133060775

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