Mary Wrote a 40 Call on ABC Stock at a Price

question 105

Multiple Choice

Mary wrote a 40 call on ABC stock at a price of $275. She does not own any shares of ABC. Mary has
I. limited her losses to $275.
II. unlimited loss potential.
III. limited her gains to $275.
IV. unlimited profit potential.

• A) I and IV only
• B) II and III only
• C) I and III only
• D) II and IV only

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Definitions:

Peripheral Neuropathy

A condition resulting from damage to the peripheral nerves, causing weakness, numbness, and pain, typically in the hands and feet.

Chorea

A neurological disorder marked by involuntary, rapid, irregular movements, affecting the face, feet, and hands, often associated with Huntington's disease.

Jerky Movements

Sudden, quick movements that are not smooth or controlled, often unintentional and possibly indicative of a neurological disorder.

Athetosis

A type of motor disorder characterized by slow, involuntary, convoluted, writhing movements of the fingers, arms, legs, or neck.