You own 200 shares of Delta stock, which is currently worth $33 a share. You just paid an option premium of $.55 to buy two put contracts on this stock with a strike price of $30. What is the maximum loss per share you are avoiding by purchasing the option contract?
A)$30.00
B)$30.85
C)$32.15
D)$33.00
E)$33.85

Question

Quizplus · Accepted Answer

The Answer of You own 200 shares of Delta stock, which is currently worth $33 a share. You just paid an option premium of $.55 to buy two put contracts on this stock with a strike price of $30. What is the maximum loss per share you are avoiding by purchasing the option contract?
A)$30.00
B)$30.85
C)$32.15
D)$33.00
E)$33.85

You Own 200 Shares of Delta Stock, Which Is Currently