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Assume the risk-free rate is 3% and will remain so for all time. IBM currently trades at $120. You purchase a 1-year European $125-strike call

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Assume the risk-free rate is 3% and will remain so for all time. IBM currently trades at $120. You purchase a 1-year European $125-strike call options on one share of IBM at the price of $4. Compute the profit of your position if IBM stock price is $140 in one year from now. a. 15 b. 11 C. 14.556 d. 10.88

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