You Own 100 Shares of a Stock with a Current

question 96

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:

Orthopnea

Difficulty breathing when lying down flat; a symptom often associated with heart failure or lung disease, alleviated by sitting or standing up.

Sitting Upright

The posture where the body is aligned vertically while seated, supporting balance and proper organ alignment.

Thoracic Cavity

The body cavity located in the chest, containing the lungs, heart, and other structures.

Abdominal Cavity

The body cavity that houses the major organs of digestion and excretion, located below the chest.