1. You sell one IBM July 120 call contract for a premium of $3. At the expiration date, iBM stock sells for $123 per share. You will realize a _______ on the investment (assume the option contract is for $100 shares).

2. You purchase a put option contract on Apple with a strike price of $120. The put option cost you $300 and gives you the right to 100 shares. You hold the option until the expiration date, when Apple stock sells for $115 per share. What is your profit or loss? (assume the option contract is for 100 shares)