A you purchase one ibm july 120 put contract for a premium, Ask an Expert

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a. You purchase one IBM July 120 put contract 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.

b. The potential loss for a writer of a naked call option on a stock is _________.

A) equal to the call premium

B) larger the lower the stock price C) limited

D) unlimited

c. You purchase one IBM March 120 put contract for a put premium of $10. The maximum profit that you could gain from this strategy is ________

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92372199

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