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You Purchase One IBM July 90 Call Contract for a Premium

Question 87

Multiple Choice

You purchase one IBM July 90 call contract for a premium of $4.The stock has a 2 for 1 split prior to the expiration date.You hold the option until the expiration date when IBM stock sells for $48 per share.You will realize a ______ on the investment.


A) $300 profit
B) $100 loss
C) $400 loss
D) $200 profit

Correct Answer:

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