Several Rumors Concerning Wyslow, Inc

question 193

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 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:

Eating Disorder

A range of psychological disorders characterized by abnormal or disturbed eating habits, which can severely impact health and quality of life.

Bulimia Nervosa

An eating disorder characterized by episodes of binge eating followed by compensatory behaviors such as purging to prevent weight gain.

Hypokalemia

A medical condition characterized by lower than normal levels of potassium in the bloodstream, which can affect nerve and muscle function.

Anorexia Nervosa

An eating disorder characterized by an obsessive fear of gaining weight, leading to a refusal to eat sufficient food for healthy living.