You Purchase One IBM July 90 Call Contract for a Premium

question 31

Multiple Choice

You purchase one IBM July 90 call contract for a premium of $4.The stock has a 2 for 1 split prior to the expiration date.You hold the option until the expiration date when IBM stock sells for $48 per share.You will realize a ______ on the investment.

• A) $300 profit
• B) $100 loss
• C) $400 loss
• D) $200 profit

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Definitions:

Age

A measure of the length of time that a person or thing has existed, typically expressed in years.

Gender

Social and cultural constructs associated with being male, female, or non-binary, rather than biological differences.

Decision Making

The process of making choices by identifying a decision, gathering information, and assessing alternative resolutions.

Rule By An Individual

A form of governance where a single person holds supreme authority, typically without effective constitutional limitations, commonly referred to as autocracy or dictatorship.