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Please help me explain those answer. 4. You write one IBM July 120 call contract for a premium of S4. You hold the option until

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Please help me explain those answer.

4. You write one IBM July 120 call contract for a premium of S4. You hold the option until the expiration date when IBM stock sells for $121 per share. You will realize a on the investment. A. S300 profit B. $200 loss C. $600 loss D. $200 profit Short Call Profit-Min[O, (S120 $121)100)]+ $400 $300

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