You Own 100 Shares of a Stock with a Current

question 69

Multiple Choice

You own 100 shares of a stock with a current price of $50 and you also own a put option of 100 shares of the stock with a strike price of $45.What is the minimum value of your portfolio at expiration? Ignore the original cost of the put option for your calculation.

• A) $50
• B) $45
• C) $5
• D) $0

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Definitions:

Personal Projects

Refers to the self-initiated and organized tasks or goals that an individual pursues, reflecting personal values and aspirations.

Panic Button Effect

The psychological response or relief felt when an individual believes they have an immediate means of escape or help in a stressful situation.

Narcissistic

Characterized by an excessive preoccupation with oneself and an inflated sense of self-importance.

Freelance

A type of employment where individuals work for themselves, taking on contract work from companies or individuals without committing to a single employer.