Question

You purchase one MBI July 120 call contract (equalling 100 shares) for a premium of $3. You hold the option until the expiration date, when MBI stock sells for $118 per share. What is the profit or loss you will realize on the investment?

Answer 1

Step-by-step explanation:

Solution: Realize a -$300 on the investment Or in other word loss of $300 Working Notes: Under PUT option , buyer of the option get right to sell shares at strike price, and the PUT opti