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ple Choices
(Choose 1 answer)
(24967) Consider a stock priced at $30. There are call options available at exercise prices of 30 and a time to expiration of six months. The calls are priced at $2.89. There are no dividends and assume that all transactions consist of 100 shares or one contract (each includes 100 options).
Suppose the investor constructed a covered call. At expiration the stock price is $27. What is the breakeven stock price at expiration?
A. $27.11
B. $30.00
C. $32.89
D. $29.89
E. none of these

Q: 34