Maximum profit that you could gain from this strategy

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Reference no: EM131182686

1. You purchase one IBM March 160 put contract for a put premium of $13. The maximum profit that you could gain from this strategy is _________.

a. $1,300 b. $16,000 c. $160 d. $14,700

2. You write one IBM July 138 call contract for a premium of $15. You hold the option until the expiration date, when IBM stock sells for $148 per share. You will realize a ______ on the investment.

a. $1,000 profit b. $1,000 loss c. $2,500 loss d. $500 profit

3. A loan for a new car costs the borrower .8% per month. What is the EAR?

a. 9.6% b. 6.87% c. .80% d. 10.03%

Reference no: EM131182686

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