You Purchase One IBM March 120 Put Contract for a Put

question 74

Multiple Choice

You purchase one IBM March 120 put contract for a put premium of $10.The maximum profit that you could gain from this strategy is _________.

• A) $120
• B) $1,000
• C) $11,000
• D) $12,000

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Definitions:

Positive Reinforcement

The process of encouraging or establishing a pattern of behavior by offering rewards for desired behavior.

Nasty Stimulus

An unpleasant or harmful stimulus that can provoke negative reactions or behaviors.

Pleasant Stimulus

Any input or event that causes a positive emotional response, such as happiness or satisfaction.

Rewards

Benefits, both material and immaterial, given to employees or individuals in recognition of their work or behavior.