You Own 300 Shares of Delta Stock, Which Is Currently

question 14

Multiple Choice

You own 300 shares of Delta stock, which is currently worth $42 a share. You just paid an option premium of $.70 to buy 3 put contracts on this stock with a strike price of $40. What is the maximum loss per share you are avoiding by purchasing the option contract?

• A)$40.00
• B)$42.85
• C)$44.15
• D)$47.00
• E)$53.85

---

Definitions:

Hydrocolloid Dressing

A type of adhesive dressing that forms a gel when in contact with wound fluid, providing moist wound healing and protection against infection.

Second Intention

A method of wound healing where the wound is left open and allowed to close naturally without surgical closure.

Heavy Exudate

A condition characterized by the release of large amounts of fluid and proteins from blood vessels into surrounding tissues, commonly seen in wounds.

Sacral Region

The area of the lower back that is near the base of the spine, consisting of five fused vertebrae.