A Stock Price Is Currently $23

question 15

Multiple Choice

A stock price is currently $23.A reverse (i.e short) butterfly spread is created from options with strike prices of $20,$25,and $30.Which of the following is true?

• A)The gain when the stock price is greater that $30 is less than the gain when the stock price is less than $20
• B)The gain when the stock price is greater that $30 is greater than the gain when the stock price is less than $20
• C)The gain when the stock price is greater that $30 is the same as the gain when the stock price is less than $20
• D)It is incorrect to assume that there is always a gain when the stock price is greater than $30 or less than $20

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Definitions:

Presumptive Close

A sales technique where the salesperson assumes that the customer has already decided to buy and moves towards finalizing the sale.

Multiple-close Sequence

A sales strategy that uses a series of closing techniques, one after another, to seal a deal when a buyer shows hesitation.

Garden Tub

A large, often luxurious bathtub that is deeper and wider than standard tubs, designed for a comfortable, spa-like bathing experience.

Water Jets

Water jets are high-pressure water streams used in various applications, such as cutting materials or cleaning surfaces.