Question: Question 5(1 point) You write one MBI July 120 call contract (equaling 100 shares) for a premium of $4. You hold the option until the

Question 5(1 point)

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 $135 per share. You will realize a ________ on the investment.

Question 5 options:

$1,100 loss

$100 loss

$400 profit

Question 6(1 point)

An investor is bearish on a particular stock and decided to buy a put with a strike price of $125. Ignoring commissions, if the option was purchased for a price of $2, what is the profit/loss for the investor if the stock sells for $115 per share at expiration date?

Question 6 options:

$800 profit

$300 profit

$200 profit

$200 loss

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