Suppose you sell one contract of options that give the buyer the right (but not...
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Suppose you sell one contract of options that give the buyer the right (but not the obligation to purchase Microsoft stock at a strike price of $100 any date within the next 12 months. You received an option premium of $0.30 per share for the option Right before the option is set to expire, Microsoft is trading at $120. What is your profit for foss) on the option? Choose the expression that would correctly calculate the profit for loss). Answer A: Profit-100x (max(120 - 100,0) - 0.30) Answer Profit-100 (max(120 - 100,0] -0.30) Answer: Profit - 100 (max(100 - 120,0) - 0.30) Answer D Profit=-100 (max(100 - 120,0] -0.30) Answer : None of the Above are correct
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