Answer: $39.60
Explanation:
A long call makes a profit when the price of the underlying stock is higher than the strike price and the cost of acquiring the call.
The Break-even point for the investor will be at the point where the underlying stock price will be the same as the strike price plus the cost paid to purchase the call.
Break-even point = Strike price + Price of call
= 37 + 2.60
= $39.60
