Question
You make a decision to write or sell one IBM July 120 call contract (equaling 100 shares) for a premium of $4. You hold the
You make a decision to write or sell one IBM July 120 call contract (equaling 100 shares) for a premium of $4. You hold the position on this option until the expiration date when IBM stock sells for $121 per share. What is your profit/loss on your investment in IBM when the stock sells at $121? Find out the break-even point of your investment in this call option contract. What can be your maximum and minimum profit/loss on this call contract?
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Options Trading For Beginners
Authors: Mike Hartley
1st Edition
979-8864514832
