Question: You write one IBM July 120 call for a premium of $4. You hold the option until the expiration date, when IBM stock sells for

You write one IBM July 120 call for a premium of $4. You hold the option until the expiration date, when IBM stock sells for $121 per share. You will realize a ______ on the investment.

A. $200 profit B. $200 loss C. $300 profit D. $300 loss

2. You long one IBM July 120 put for a premium of $3. You hold the option until the expiration date, when IBM stock sells for $123 per share. You will realize a ______ on the investment.

A. $200 profit B. $200 loss C. $300 profit D. $300 loss

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