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You purchase one MBI July 120 call contract (equaling 100 shares) for a premium of $5. You hold the option until the expiration date, when

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You purchase one MBI July 120 call contract (equaling 100 shares) for a premium of $5. You hold the option until the expiration date, when MBI stock sells for $123 per share. You will realize a on the investment. $200 profit $200 loss $300 profit $300 loss A. B. C. D. 1. 2. You purchase one MBI July 120 put contract (equalling 100 shares) for a premium of $3. You hold the option until the expiration date, when MBI stock sells for $122 per share. What is the profit or loss you will realize on the investment? Write the advantages of exchange-traded options over OTC options. You purchase one Samsung May 110 (equalling 100 shares) put contract for a put premium of $10. What is the maximum profit that you could gain from this strategy? 3

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