Which of the following statements about options are TRUE?
I. You write one MBI July 120 call contract (equivalent to 100 shares) for a premium of $4, and when MBI stock sells for $121 per share, you will realize a $300 profit on the investment.
II. A call option on crude oil has a strike price of $85 per barrel, and a premium of $5 per barrel. If the current market price of oil is $83 per barrel, the net loss associated with this option is $5.
III. You purchase a call option on a stock. The profit at contract maturity of the option position is max (-C0, ST - X - C0), where X equals the option's strike price, ST is the stock price at contract expiration, and C0 is the original purchase price of the option.
IV. The writer of a call option has the right to sell shares at a set price.