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. $300 profit $200 loss $600 loss $200 profit

Respuesta :

Answer:

The answer is a 'short call profit'

Explanation:

Short call profit = Min [0, ($120- $121)(100)] + $400

                          = $300.

ACCESS MORE
ACCESS MORE
ACCESS MORE
ACCESS MORE