Please explain your answer.

1. Suppose you short one WFM May 100 put contract at $5 and long one WFM May 105 put contract at $2. Your maximum profit/loss from your strategy would be

Multiple Choice

• gain of $200.

• loss of $300.

• loss of $200

• gain of $300.

• None of the above.

2. Suppose you purchase one WFM May 100 put contract at $5 and write one WFM May 105 put contract at $2. The maximum potential profit/loss per contract of your strategy will ________, if both options are exercised.

Multiple Choice

• gain of $600

• loss of $800

• gain of $200

• loss of $300

• None of the above