You purchase one IBM 70 call option for a premium of $6. Ignoring transaction costs, the break-even price of the position is? You purchase one IBM 70 call option for a premium of $6. Ignoring transaction costs, the break-even price of the position is? $98 $76 $64 None of these $70
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IBM stock currently sells for 84 dollars per share. Over 8 months the price will either go up by 7.5 percent or down by -3.0 percent. The risk-free rate of interest is 4.5 percent continuously compounded. If you are short one call option with strike price 83 and maturity of 8 months, how many shares of stock must you buy to establish a delta-neutral position? 0.3 0.82766 0.57576 -0.09 0.27288
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