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

question 27

Multiple Choice

Suppose you purchase one IBM May 100 call contract at $5 and write one IBM May 105 call contract at $2.The maximum potential profit of your strategy is

• A) $600.
• B) $500.
• C) $200.
• D) $300.
• E) $100.

---

Definitions:

Assistance

Assistance refers to the act of helping or providing aid to others.

Continuous Gradual Fashion

A manner of change or development that is steady and uninterrupted over time.

Stage Theory

A psychological theory that proposes individuals go through distinct and sequential stages of development across their lifespan.

Cognitive Development

The process by which individuals acquire and evolve in their ability to think, reason, and understand their world.