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You Purchase One IBM July 125 Call Contract for a Premium

Question 5

Multiple Choice

You purchase one IBM July 125 call contract for a premium of $5.You hold the option until the expiration date when IBM stock sells for $123 per share.You will realize a ______ on the investment.


A) $200 profit
B) $200 loss
C) $500 profit
D) $500 loss

Correct Answer:

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