You Purchase One IBM July 125 Call Contract for a Premium

question 25

Multiple Choice

You purchase one IBM July 125 call contract for a premium of $5.You hold the option until the expiration date when IBM stock sells for $123 per share.You will realize a ______ on the investment.

• A) $200 profit
• B) $200 loss
• C) $500 profit
• D) $500 loss

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Definitions:

Degrees Of Freedom

The number of independent values or quantities that can vary in an analysis without breaking any constraints.

Fertilizer Types

Varieties of substances used to enhance the growth of plants by providing essential nutrients.

Bermuda Grass

A durable, heat-tolerant grass commonly used in lawns, parks, and golf courses, known for its dense, green turf.

Degrees Of Freedom

The number of independent values or quantities which can be assigned to a statistical distribution.