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

question 91

Multiple Choice

Suppose you purchase one WFM May 100 call contract at $5 and write one WFM May 105 call contract at $2. What is the lowest stock price at which you can break even?

• A) $101
• B) $102
• C) $103
• D) $104
• E) None of the options are correct.

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Definitions:

Conditioned Stimulus

A previously neutral stimulus that, after association with an unconditioned stimulus, comes to elicit a conditioned response.

Unconditioned Stimulus

In classical conditioning, a stimulus that naturally and automatically triggers a response without requiring any learning.

Conditioned Taste Aversion

An acquired response where an individual avoids consuming a certain food or drink due to a previous negative experience, such as illness.

Cultural Practices

The shared activities, rituals, and traditions that are prevalent within a specific community or society, reflecting their values and beliefs.