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A long call with strike Rs 100 and premium Rs 5 has its breakeven at:
ARs 95
BRs 105
CRs 100
DRs 110
Answer & Solution
Correct answer: B. Rs 105
1. Identify what the question asks: this concept maps to callbreakeven (§6.6.1).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (B).
_Source: ICAI BoS CA Final Paper 2, Ch 9 "Derivatives Analysis and Valuation"_
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