Suppose You Write a Strap and the Share Price Winds

question 32

Multiple Choice

Suppose you write a strap and the share price winds up to be $42 at contract expiration. What was your net profit on the strap?

• A)$200
• B)$300
• C)$700
• D)$400

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Definitions:

Shortsightedness

A common vision condition, also known as myopia, wherein distant objects appear blurry while close objects can be seen clearly.

Cheating

Acting dishonestly or unfairly to gain an advantage, especially in a competitive situation or examination.

Honest Fashion

The practice of presenting oneself or creating designs in a manner that is transparent, ethical, and devoid of deception.

Representativeness Heuristic

A cognitive shortcut that involves judging the likelihood of an event based on how closely it resembles the typical case.