Suppose You Purchase One WFM May 100 Call Contract at $5

question 61

Multiple Choice

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

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Definitions:

Real Rate Of Return

The annual percentage return realized on an investment, adjusted for changes in the price level due to inflation or other external factors.

Experts

Individuals with advanced knowledge or skills in a particular area, usually acquired through education, training, and experience.

Mutual Funds

Investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities.

Corporate America

A term often referring to the United States' major business corporations and their practices, influence on the economy, and role in society.