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:

Electronic Commerce

The buying and selling of goods and services, or the transmission of funds or data, over an electronic network, primarily the internet.

Electronic Records

Information or data that is stored in a digital format, allowing for easier access, manipulation, and storage compared to traditional paper records.

Memorandum

A written document or note that is used for internal communication within an organization, often to convey information, policies, or procedures.

Enforceable

An attribute of contracts or legal obligations that allows them to be legally compelled or carried out by a court.