Assume it is June, 2010 and you are awaiting clarity on BPs fundamentals. As an investor, you are looking at options scenarios given the unpredictable oil spill crisis and associated firm specific risk (unsystematic risk). BPs closing price on June 8, 2010 was 34.67. Using the option prices shown below for the underlying security (BP), do the following:

Now assume you own 100 shares of the stock your group has selected to present for the stock research project. Use December options to develop a protective put strategy. If the company does not have December options, use November or January options. Select the put with a strike price nearest to your companys trading price. What will your total return be if your stock price falls to 0? What if the stock price rises 100%?