Exhibit 4.1: Managing Financial risk Example 2 Options on stocks can be used to protect against adverse stock price movements A call option gives the owner the right to buy 100 shares of stock at a given price during a specified period A put option gives the owner the right to sell 100 shares of stock at a given price during a specified period One option strategy is to buy put options to protect against a decline in the price of stock that is already ownedExhibit 4.1: Managing Financial Risk – Example 2 • Options on stocks can be used to protect against adverse stock price movements. – A call option gives the owner the right to buy 100 shares of stock at a given price during a specified period. – A put option gives the owner the right to sell 100 shares of stock at a given price during a specified period. • One option strategy is to buy put options to protect against a decline in the price of stock that is already owned