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Question 34 2.5 pts Questions 31-34 are based on the following information: A European call option is written on £62,500. The

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Answer #1

Call option is the right to buy a specified security at a specified price in the future at the option of the call buyer

Strike price is $1.55

Premium per Pound = 1,875/62,500 = $0.03

Hence, break even call price = 1.55+0.03 = $1.58/Pound

This price will lead to no profit/no loss for both the buyer of the option and the seller of the option

Hence, the answer is $1.58/Pound

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