Final answer:
Common stock is the investment choice exposed to the greatest amount of capital risk due to its position at the bottom of the priority ladder and its value being highly affected by the performance of the company.
Step-by-step explanation:
Among the given choices, common stock is exposed to the greatest amount of capital risk. This is because common stockholders are at the bottom of the priority ladder for ownership structure. In the event of liquidation, common stockholders are the last to receive any payouts after bondholders, preferred shareholders, and other debt holders are paid. Moreover, the value of common stock is directly affected by the performance of the company, making it highly volatile.
Corporate bonds are less risky compared to common stocks; they offer interest payments at scheduled intervals and the repayment of principal upon maturity, but there is still risk involved if the company faces financial difficulties. American depositary receipts (ADRs) represent shares in foreign companies and carry similar risks to domestic stocks, but also include risks related to currency fluctuations and geopolitical factors. Lastly, equity options have high risk based on their leverage factor and time decay, but they do not represent ownership in a company and are not subject to the same type of capital risk as owning the actual stock.
In conclusion, considering the direct impact of company performance on the value and lower priority in claims, common stock stands out as the investment choice bearing the greatest capital risk compared to corporate bonds, ADRs, and equity options.