Several Rumours Concerning Wyslow Have Started Circulating

question 86

Multiple Choice

Several rumours concerning Wyslow have started circulating.These rumours are causing the market price of the share to be quite volatile.Given this situation, you decide to buy both a one-
Month put and a call option on this share with an exercise price of €15.You purchased the call at a
Quoted price of €.20 and the put at a price of €2.10.What will be your total profit or loss on these
Option positions if the share price is €4 on the day the options expire?

• A)-€230
• B)€870
• C)€890
• D)€910
• E)€1,310

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Definitions:

Ileum

The final and longest segment of the small intestine, responsible for the absorption of nutrients and vitamins.

Duodenum

The first section of the small intestine immediately following the stomach, playing a crucial role in digestion.

Villi

Finger-like projections on the wall of the small intestine that increase surface area for absorption of nutrients.

Mucosa

The moist tissue layer lining some organs and body cavities, including the nose, mouth, lungs, and digestive tract.