You Purchase One IBM July 120 Call Contract for a Premium

question 30

Multiple Choice

You purchase one IBM July 120 call contract for a premium of $5. You hold the option until the expiration date when IBM shares sell for $123 per share. You will realise a ________ on the investment.

• A)$200 profit
• B)$200 loss
• C)$300 profit
• D)$300 loss

---

Definitions:

Business-To-Business (B2B)

Describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or a wholesaler and a retailer.

Business-To-Consumer (B2C)

A transaction model where businesses sell products or services directly to consumers, typically through retail or online platforms.

Supply Chain

A network of suppliers, manufacturers, and distributors involved in producing, delivering, and selling products.