Today, You Purchased 300 Shares of Lazy Z Stock for $49.80

question 25

Multiple Choice

Today, you purchased 300 shares of Lazy Z stock for $49.80 per share. You also bought three 1-year, $50 put options on Lazy Z stock at a cost of $.55 per share. What is the maximum total amount you can lose over the next year on these purchases?

• A) −$15,105
• B) −$11,050
• C) −$160
• D) −$105
• E) $0

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Definitions:

UCITA

The Uniform Computer Information Transactions Act, a proposed state law aimed at governing the sale and licensing of computer software and digital information.

Cyber-Commerce

Involves transacting business by any one of several types of electronic communication, from debit card purchases to buying and selling goods on the Internet.

Persuasive Precedent

Judicial decisions from other jurisdictions or legal systems that are taken into consideration but not binding in the current case.

Binding Precedent

A legal principle from a previous case that must be followed by courts in future cases with similar circumstances.