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You have taken a long position in a call option on IBM common stock. The option has an exercise price of $150 and IBM's stock

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You have taken a long position in a call option on IBM common stock. The option has an exercise price of $150 and IBM's stock currently trades at $155. The option premium is $7 per share. Contracts are for 100 shares. What is your net profit on the option if IBM's stock price increases to $166 at the expiration of the option and you exercise the option? Selected Answers 6. $1,600

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