Question: Please explain how to derive the answer. 13) Mathew simultaneously sold a July 40 put on ZXY stock for $200 and bought a July 35

Please explain how to derive the answer.

13) 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 Answer: A

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