Finra Exam Series-7 Topic 7 Question 15 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 15
Topic #: 7

In early September, Bubba buys 100 shares of XYZ for $83 per share and simultaneously writes one XYZ March 90 call for $4.

What is the price for XYZ stock at which Bubba will breakeven?

A$94

B$87

C$86

D$79

Show Suggested Answer

Suggested Answer: D

$79. Bubba's breakeven is his cost of the stock less the premium he received ($83 - $4).

by Reita at May 04, 2022, 09:08 PM

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