Question: I know the answer and the formula to get it. I just need help entering it in my calculator the get the right answer. I

I know the answer and the formula to get it. I just need help entering it in my calculator the get the right answer. I have a ti-84 and a BA II plus. Thank you so much!

You write one MBI July 120 call contract (equaling 100 shares) for a premium of $4. You hold the option

until the expiration date, when MBI stock sells for $121 per share. You will realize a ________ on the

investment. 1) _______

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

C. $300 profit

c-max(S-X,0)=[4-max(121-120, 0)]*100=300

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!