Mathew Simultaneously Sold a July 40 Put on ZXY Stock

question 72

Multiple Choice

Mathew simultaneously sold a July 40 put on ZXY stock for $200 and bought a July 35 put for $75. His maximum loss is ______and his maximum gain is______ .

• A) $375; $125
• B) $375; unlimited
• C) $500; $125
• D) $275; $125

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Definitions:

Closure

The concept in psychology where individuals seek a sense of resolution or conclusion to a psychological event or experience.

Paradoxical Cold

A phenomenon where cold stimuli are perceived as painful or burning due to neural confusion, often occurring in cold environments.

Vestibular System

A sensory system located in the inner ear that helps regulate balance and spatial orientation.

Body Orientation

The positioning of the body in relation to the surrounding space and can indicate attitudes, feelings, and intentions.