Question: Answer with the dollar amount and state if a profit, loss, or breakeven. You purchase one IBM call contract with a strike price of $122

Answer with the dollar amount and state if a profit, loss, or breakeven.

You purchase one IBM call contract with a strike price of $122 for a premium of $5. At the option expiration date, IBM stock sells for $123 per share. You will realize a ______ on the investment.

You purchase one IBM call contract with a strike price of $120 for a premium of $3. At the option expiration date, IBM stock sells for $123 per share. You will realize a ______ on the investment.

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