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Suppose You Purchase One Texas Insurance August 75 Call Contract

Question 46

Multiple Choice

Suppose you purchase one Texas Insurance August 75 call contract quoted at $8.50 and write one Texas Insurance August 80 call contract quoted at $6. If, at expiration, the price of a share of Texas Instruments stock is $79, your profit would be ________.


A) $150
B) $400
C) $600
D) $1,850

Correct Answer:

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