Suppose you purchase one WFM May 100 call contract at $5 and write one WFM May 105 call contract at $2. The maximum potential profit of your strategy is ________, if both options are exercised.
A. $600
B. $500
C. $200
D. $300
E. $100
C. $200
$100 $5 = $105; + $2 + $105 = $107; $2 × 100 = $200.
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Sal has been in the landscaping business for over 40 years. When Jaime, his business partner, suggested adding snow removal as an extra service, Sal responded with "My gut feeling is to say yes because of my experience in the past and what I have seen other companies do over the years, both successfully and not." Sal is acting on _____ in his response to Jaime.
A. a knowledge dilemma B. a business reaction C. a knee-jerk reaction D. unbounded rationality E. intuition
In 2004, the number of unemployed people in a country decreased from 8.8 million to 8.1 million, while the labor force increased from 146.5 million to 147.4 million. By how much did the unemployment rate decrease?
A. 0.5 percentage point B. 0.7 percentage point C. 0.9 percentage point D. 1.1 percentage point
How do informational reports and analytical reports differ?
A) Informational reports emphasize facts; analytical reports emphasize reasoning and conclusions. B) Informational reports are intended for internal audiences; analytical reports are intended for external audiences. C) Informational reports are written using a formal writing style; analytical reports are written using an informal writing style. D) Informational reports emphasize reasoning and conclusions; analytical reports emphasize facts.
Which of the following is a type of insurance that is usually yearly renewable term insurance whose typical coverage is one to two times the employee's annual salary?
A. Common stock B. Workers' compensation C. Group life insurance D. Protected health