You Own 200 Shares of Delta Stock Which Is Currently

question 22

Multiple Choice

You own 200 shares of Delta stock which is currently worth $33 a share.You just paid an option premium of $0.55 to buy two put contracts on this stock with a strike price of $30.What is the maximum loss per share you are avoiding by purchasing the option contract?

• A) $30.00
• B) $30.85
• C) $32.15
• D) $33.00
• E) $33.85

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Definitions:

Organic Litter

Decomposed or decomposing organic matter found on the surface of the soil, originating from dead plants and animals.

Casparian Strip

A waterproof barrier located in the cell walls of the endodermis of plant roots, controlling the flow of water and nutrients from the soil into the vascular system of the plant.

Endoderm

Innermost tissue layer of an animal embryo.

Transpiration

How plants transport moisture from their roots to small holes located on the leaf undersides, converting to vapor and then releasing it into the atmosphere.