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You Purchase One MBI July 90 Call Contract for a Premium

Question 75

Multiple Choice

You purchase one MBI July 90 call contract for a premium of $4. The stock has a 2-for-1 split prior to the expiration date. You hold the option until the expiration date, when MBI stock sells for $48 per share. You will realize a ________ on the investment.


A) $300 profit
B) $100 loss
C) $400 loss
D) $200 profit

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