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

Acknowledge the role and contents of the Management Discussion and Analysis (MD&A) section in annual reports.

Understand the function and necessity of audit opinions and internal control reports for ensuring the accuracy and reliability of financial statements.

Grasp the significance of industry and economic conditions in financial analysis.

Understand the concept and application of common-sized financial statements.

---

Definitions:

Self-Esteem Fallacy

The self-esteem fallacy refers to misconceptions that high self-esteem is the primary cause of many positive outcomes or that boosting self-esteem will necessarily lead to better performance and fewer problems.

Bias

A tendency to lean in a certain direction, either in favor of or against a particular thing, person, or group, often in a way considered to be unfair.

Self-Fulfilling Prophecy

A prediction or expectation that causes itself to become true, due to the behavior of the person who holds the belief or those around them.

Criticizing

Expressing disapproval of someone or something based on perceived faults or mistakes.