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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 $126 in one year from now. Select one: O a. -2.88 O b. -3.88 C. -3 O d. 1

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