Probability is working against me

This one has me really confused.

We know that A and B are mutually exclusive – so there’s zero overlap.

And we know that both events happening at the same time = A x B.

Since there is zero overlap, both events can’t happen at the same time, so shouldn’t A x B = 0?

Please help me understand how to go about this one? and where is my understanding wrong?

Great question.

You’re mistaking a probability rule for a logic rule.

A and B can not happen at the same time

But that does not mean A x B = 0

A = probability it rains tomorrow

B = probability it does not rain tomorrow

Since one and only one of these must happen, A + B = 1

And we are being asked: what is the maximum value of A × B?

This is not about mutually exclusive events both happening.
Instead, we’re looking for the maximum possible value of A x B, under the constraint A + B = 1.

and we can get the max value of A x B when both A and B are super close to each other in the middle. So A = 0.5 and B = 0.5, and A x B = 0.25?

Please correct me here if I’m wrong

Exactly