Question: 1. You purchase one MBI July 120 call contract (equalling 100 shares) for a premium of $3. You hold the option until the expiration

1. You purchase one MBI July 120 call contract (equalling 100 shares) for a premium of $3. You hold the option until the expiration date, when MBI stock sells for $118 per share. What is the profit or loss you will realize on the investment? 2. You purchase one Samsung May 110 (equalling 100 shares) put contract for a put premium of $5. What is the maximum profit the writer of the contract could gain from this strategy?

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