Multiple Choice
You sell an IBM call option for $4. The strike price of the option is $120, and the maturity is one year. At maturity, the price of the IBM stock is $126. Your profit/loss over the entire transaction is:
A) $3 profit
B) $2 loss
C) $6 loss
D) $4 profit
Correct Answer:
Verified
Correct Answer:
Verified
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