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You purchase one IBM July $ 1 2 0 call contract for a premium of $ 5 . You hold the option until the expiration

You purchase one IBM July $

120

call contract for a premium of $

5 .

You hold the option until the expiration date when IBM stock sells for $

126

per share. You will realize a

on the investment?

(

$ amount and profit or loss

)

put in dollar loss

/

profit and specify which.

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