Chapter 02 · Section 2.1

The loss if the stock trades below $30

Shawn is the holder of a call option, i.e. he is long a call option. It is a Ford Dec 30 call and the premium he paid was $ 2 per share.

...and what would the loss be if the Ford stock trades below $30?

c) less
No. The option gives Shawn the right to buy 100 Ford shares at 30. If the Ford share is available for less, that option is useless and Shawn lost the money he invested in the option.