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Please help me answer the questions. The explanations are confusing. 2.You purchase one IBM July 125 call contract for a premium of S5. You hold

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Please help me answer the questions. The explanations are confusing.

2.You purchase one IBM July 125 call contract for a premium of S5. You hold the option until the expiration date when IBM stock sells for $123 per share. You will realize a on the investment A. $200 profit B. $200 loss C. $500 profit D. S500 loss Long Call Profit = Max[0,(S123-$125)(100)]-$500 =-S500

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