You Write One IBM July 120 Call Contract for a Premium

question 39

Multiple Choice

You write one IBM July 120 call contract for a premium of $4.You hold the option until the expiration date when IBM stock sells for $121 per share.You will realize a ______ on the investment.

• A) $300 profit
• B) $200 loss
• C) $600 loss
• D) $200 profit

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Definitions:

Involuntary Civil Commitment

A legal process through which individuals with severe mental disorders are court-ordered to receive treatment in a psychiatric hospital against their will, usually because they are considered a danger to themselves or others.

Conviction

A firmly held belief or opinion or the formal declaration that someone is guilty of a criminal offense, made by the verdict of a jury or the decision of a judge in a court of law.

Canadian Criminal Code

The body of criminal law that regulates offenses and procedures in Canada, specifying what actions constitute crimes and their respective punishments.

General Practitioners

Medical doctors who provide primary and continuing care in the community, treating patients with a wide range of health issues.