Several Rumors Concerning Wyslow,Inc

question 10

Multiple Choice

Several rumors concerning Wyslow,Inc. stock have started circulating. These rumors are causing the market price of the stock to be quite volatile. Given this situation,you decide to buy both a one-month put and a one month call option on this stock 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 stock 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:

Complications

Unexpected problems or conditions that arise during or after a medical procedure, treatment, or illness, making the situation more difficult to manage.

Pulmonary Vein

A blood vessel that carries oxygenated blood from the lungs back to the left atrium of the heart.

Superior Vena Cava

A large vein that carries deoxygenated blood from the upper half of the body to the heart.

Inferior Vena Cava

The large vein that carries deoxygenated blood from the lower and middle body into the right atrium of the heart.