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You buy 100 shares of IBM for $110/share and simultaneously sell a 120 call option (100 shares) for $1.25. If IBM is trading at $135,

You buy 100 shares of IBM for $110/share and simultaneously sell a 120 call option (100 shares) for $1.25. If IBM is trading at $135, your profits are ______.

need explanation

a. 125

b. 375

c. 2500

d. 1125 correct answer

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