mastery exam 2 questions and answers graded A+

mastery exam 2 questions and answers graded A+ A customer buys 1 ABC Jul 40 Put at $6 when the market price of ABC is $38. The breakeven point is: - $34 long put= strike price - premium Which positions are profitable in rising markets? -I Long put spread -II Short put spread -III Short straddle -IV Short stock - Short put spread Short put spreads, like simply selling a put, are profitable if the market rises. Long put spreads, like simply buying a put, are profitable if the market falls. Short straddles are profitable if the market stays flat. Short stock positions are profitable when the market falls. A customer sells 1 ABC Jul 30 Call @ $1 and sells 1 ABC Jul 30 Put @ $3.50 when the market price of ABC is $29. The maximum potential loss is: - unlimited Short put spreads are profitable in all of the following circumstances EXCEPT: A the spread between the premiums widens above the credit received B the spread between the premiums narrows below the credit received C both positions expire D the market falls by an amount that is less than the credit received - the spread between the premiums widens above the credit received credit spreads are profitable only if the spread narrows below the credit received. A customer sells short 100 shares of ABC at $35 and buys 1 ABC Jul 35 Call @ $3. The stock falls to $30 and the customer closes the option contract at $1 and buys the stock at the current market price. The customer has a: - $300 gain -The customer sold the stock for $35 bought a call, paying a premium of $3 per share. The customer closes the