An Investor Buys a Call with a Strike Price of $40

question 4

Multiple Choice

An investor buys a call with a strike price of $40 and sells a call on the same stock and with the same expiration date that has a strike price of $35. What will the total payoff for this strategy
Be if the price of the stock is $43 when the options expire?

• A)+$5.00
• B)+$2.00
• C)-$5.00
• D)-$2.00

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Definitions:

Generalized Anxiety Disorder

A psychological disorder characterized by persistent and excessive worry about different activities and events, often without a specific cause.

Social Phobia

A chronic mental health condition characterized by an intense fear or anxiety of being judged, negatively evaluated, or rejected in a social or performance situation.

Personal Shortcomings

Individual weaknesses or flaws that may hinder personal development or effectiveness.

Depression

A mental health disorder characterized by persistent sadness, loss of interest, and a range of emotional and physical symptoms, impacting daily functioning.