a. You purchase one IBM July 120 put contract for a premium of $3. You...
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Accounting
a. You purchase one IBM July 120 put contract for a premium of $3. You hold the option until the expiration date, when IBM stock sells for $123 per share. You will realize a ______ on the investment.
b. The potential loss for a writer of a naked call option on a stock is _________.
A) equal to the call premium B) larger the lower the stock price C) limited D) unlimited
c. You purchase one IBM March 120 put contract for a put premium of $10. The maximum profit that you could gain from this strategy is _________.
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