You Sell an IBM Call Option for $4

question 1

Multiple Choice

You sell an IBM call option for $4.The strike price of the option is $120,and the maturity is one year.At maturity,the price of the IBM stock is $126.Your profit/loss over the entire transaction is:

• A)$3 profit
• B)$2 loss
• C)$6 loss
• D)$4 profit

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Definitions:

Personality Traits

Enduring characteristics or qualities that define an individual's behavior, emotions, and thought patterns.

Environmental Influences

External factors surrounding an individual that significantly impact their behavior, development, and growth.

Conscious Rational Beings

Refer to individuals who possess self-awareness and the capability to reason and make judgments.

Cognitive Movement

An approach within psychology that emphasizes understanding how our thought process influences behavior and learning.