Contract for a premium


You write one IBM July 120 call contract for a premium of $4. You hold the option until the expiration date when IBM stock sells for $121 per share. You will realize a ______ on the investment.

a) $300 profit

b) $200 loss

c) $600 loss

d) $200 profit

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Accounting Basics: Contract for a premium
Reference No:- TGS085169

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