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stiv31 [10]
3 years ago
15

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
Business
1 answer:
Jet001 [13]3 years ago
3 0

Answer:

$200 profit

Explanation:

Call profit

=2 {0, [$48 - ($90/2)(100)]} - $400 = $200

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