You Purchase One IBM March 200 Put Contract for a Put

question 57

Multiple Choice

You purchase one IBM March 200 put contract for a put premium of $6. What is the maximum profit that you could gain from this strategy?

• A) $20,000
• B) $20,600
• C) $19,400
• D) $19,000

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Definitions:

Medium of Exchange

A facilitative tool employed to assist in the buying, selling, or exchanging of products among individuals or groups.

Money Supply

The full amount of financial resources at an economy's disposal, including cash, coins, and the amounts in checking and savings accounts, at a particular moment.

Financial Intermediaries

Organizations that facilitate the channeling of funds between savers and borrowers, including banks, credit unions, and insurance companies.

Welfare Banks

Financial institutions focused on providing services and support to individuals in need, though not a widely recognized term in traditional finance.