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

question 60

Multiple Choice

Suppose you purchase one WFM May 100 call contract at $5 and write one WFM May 105 call contract at $2. What is the lowest stock price at which you can break even?

• A)$101
• B)$102
• C)$103
• D)$104

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Definitions:

Perceptual Skills

The ability to see, hear, or become aware of something through the senses, including the interpretation of sensory information to understand the environment.

Developmental Psychologist

A specialist in psychology who studies the growth and development of the human mind and behavior across the lifespan.

Basic Research

Refers to study aimed at gaining a more comprehensive understanding of fundamental aspects and principles.

Hindsight Bias

The tendency to believe, after an event has occurred, that one would have predicted or expected the outcome, often referred to as the "I-knew-it-all-along" phenomenon.