You Are Cautiously Bullish on the Common Stock of the Wildwood

question 64

Multiple Choice

You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of the stock is $50 per share. You want to establish a bullish money spread to help limit the cost of your option position. You find the following option quotes:

Ignoring commissions, the cost to establish the bull money spread with calls would be ________.

• A) $1,050
• B) $650
• C) $400
• D) $400 income rather than cost

---

Definitions:

Internal States

Refers to the mental and emotional conditions or processes within an individual, such as feelings, thoughts, and mood, that are not observable by others.

B. F. Skinner

An American psychologist known for his work in behaviorism and for developing the theory of operant conditioning.

Unobservable States

Refers to internal processes or conditions that cannot be directly observed or measured, such as thoughts, feelings, or intentions.

Behaviourism

A theory of learning that focuses on observable behaviors and discounts mental activities, asserting that behavior is a result of environmental stimuli.