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:

Special Batch

A unique production run of goods, often made to fulfill a specific requirement or order.

Peanut Allergy

An allergic reaction that occurs when one's immune system overreacts to proteins in peanuts, potentially causing severe and life-threatening reactions.

Syndicate

A group of individuals or organizations combined to promote some common interest, commonly used in reference to banking, investment, or insurance groups.

Financing

The process of providing funds for business activities, making purchases, or investing.