1) You own 2,545 stocks of KING KONG Enterprises, currently trading at $50.50 A piece. Based on your research, there is a risk that over the next 6 months, the price can fall significantly. You know from your finance class that you can use options to hedge your position. You look up the appropriate information and determine that you can buy put options with a strike price of $46.50, which will cost $235 per contract (1 Contract = 100 options). The options have an expiry of 6 months. If you hedge your position, and the price drops to $35.00 per share determine your total loss.