单选题
An investor writes a July 20 call on a stock trading at 23 for premium of $4. The breakeven price on the trade and the maximum gain on the trade are, respectively:
Breakeven Price Maximum Gain
①A. $24 $4
②B. $24 $3
③C. $27 unlimited
【正确答案】
A
【答案解析】The breakeven price is the premium received on the call plus the strike price. For a writer of an option, the maximum gain is the premium received.