You hold the option until the expiration date when ibm, Financial Management

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You hold the option until the expiration date when ibm

1. You sell one IBM July 120 call contract for a premium of $2. At the expiration date, iBM stock sells for $121 per share. You will realize a _______ on the investment (assume the option contract is for $100 shares).

2. You purchase one IBM July 120 put contract for a premium of $3. You hold the option until the expiration date, when IBM stock sells for $123 per share. You will realize a _______ on the investment (assume the option contract is for 100 shares).

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