Let there exist a non-dividend-paying stock that has a current price of $80. A $76...
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Let there exist a non-dividend-paying stock that has a current price of $80. A $76 strike, three month call option on this stock is written by a market maker. The option's price is $5.44 At the same time, one share of the underlying stock is bought simultaneously by the market maker. 4% is the continuously compounded, risk-free interest rate. At what final value of the stock price, will the market maker break even?
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