Today,you Purchased 100 Shares of Lazy Z Stock at a Market

question 13

Multiple Choice

Today,you purchased 100 shares of Lazy Z stock at a market price of $47 per share.You also bought a one year,$45 put option on Lazy Z stock at a cost of $0.15 per share.What is the maximum total amount you can lose on these purchases?

• A)-$4,715
• B)-$4,685
• C)-$4,015
• D)-$215
• E)-$0

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Definitions:

Stock Price

Stock price is the amount of money required to purchase a share of a company's stock, fluctuating based on supply, demand, and market sentiment.

Subscription Price

The cost at which existing shareholders can purchase additional shares in a company, often at a discount during a rights issue.

Rights Offering

An offering where existing shareholders have the right, but not the obligation, to purchase new shares at a discount to the public offering price, within a specific time frame.

Stock Price

The current price at which a share of stock can be bought or sold on the stock market.