You write one IBM July 139 call contract for a premium of $17. You hold the option until the expiration date, when IBM stock sells for $150 per share. You will realize a ______ on the investment.
You will realize a Profit of $600 on the investment. | |
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Thank you for using Chegg | |
Please find below the answer | |
Statementshowing Computations | |
Paticulars | Amount |
Since the price on expiration is $150 per share the option buyer will exercise the option as we have to deliver the stock at 139 | |
Thus Our Profit/Loss = 100 (139 - 150 +17) | 600.00 |
You write one IBM July 139 call contract for a premium of $17. You hold the...
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