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22. You are bullish on IBM and have decided to buy 10 contracts (1000 shares) of me the-money IBM call options which will exp
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Answer #1

Solution :- 22

The Option is given " At the money " which means the Current market Price is equal to strike Price

Therefore Strike Price = $80

Call Premium = $5

Stock Price to be Break even in call option = Strike Price + Call Premium = $80 + $5 = $85

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