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

question 38

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 loss you could suffer from your strategy is

• A) $200.
• B) $300.
• C) zero.
• D) $500.
• E) none of these.

---

Definitions:

Generalized Anxiety Disorder

Feelings of dread and foreboding and sympathetic arousal of at least six months’ duration.

Persistent Anxiety

A state of continuous worry and nervousness that may not be related to any specific threat or issue.

Phobic Object

An object or situation that triggers an irrational and intense fear response in an individual.

Autonomic Arousal

The activation of the autonomic nervous system, which regulates involuntary physiological processes, such as heart rate, digestion, respiratory rate, and arousal in response to stress or excitement.