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Author Question: Matt owns 500 shares of IKM stock. The market price of IKM is $51.74. Matt just sold five calls on ... (Read 84 times)

heatherbabydoll1

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Question 1

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 ________.
◦ $375; $125
◦ $375; unlimited
◦ $500; $125
◦ $275; $125

Question 2

Matt owns 500 shares of IKM stock. The market price of IKM is $51.74. Matt just sold five calls on IKM with a strike price of $50. This is known as
◦ writing a naked call.
◦ writing a covered call.
◦ creating a naked cover.
◦ covering a short position.


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Marked as best answer by heatherbabydoll1 on Mar 29, 2022

athenaheim

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heatherbabydoll1

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Reply 2 on: Mar 29, 2022
YES! Correct, THANKS for helping me on my review


samiel-sayed

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Reply 3 on: Yesterday
:D TYSM

 

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