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What is the breakeven stock price at expiration

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Reference no: EM133069148

Consider a stock priced at $31 with put and call options available at exercise prices of 30 and a time to expiration of six months. The calls are priced at $3.56 and the puts cost $1.15. There are no dividends on the stock and the options are European. What is the breakeven stock price at expiration for the writer of a covered call if the stock price at expiration is $27?

Reference no: EM133069148

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