Exhibit 22 -Refer to Exhibit 22

question 47

Multiple Choice

Exhibit 22.2
Use the Information Below for the Following Problem(S)
$$\begin{array} { c} &&\text{XYZ CORP}\\ & \quad\quad\quad\quad \text { Exercise } & & \quad\quad\quad\quad\quad\quad { \text { NYSE } } \\& \text { Date } & \text { Price } & \text { Price } & \text { Clase } \\\hline \text { Calls } & \text { OCT } & 85 & 163 / 4 & 101\quad11 / 16 \\& \text { OCT } & 90 & 12 & 101\quad11 / 16 \\& \text { OCT } & 95 & 75 / 8 & 101\quad11 / 16 \\\text { Puts } & \text { OCT } & 85 & 1 / 8 & 101\quad11 / 16 \\& \text { OCT } & 90 & 3 / 8 & 101\quad11 / 16 \\& \text { OCT } & 95 & 13 / 16 & 101\quad11 / 16\end{array}$$
-Refer to Exhibit 22.2.If you establish a long straddle using the options with an 85 exercise price,what is your dollar gain or loss if at expiration XYZ is still trading at 101 11/16?

• A) $18.75 loss
• B) $18.75 gain
• C) $1,668.75 gain
• D) $1,668.75 loss
• E) $1,687.50 loss

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Definitions:

Institutionalized Adults

Adults who have adapted to and depend on the structured environment of an institution, such as a prison or hospital, often leading to difficulties adjusting to life outside.

Intellectual Hypotheses

Theoretical constructs or propositions that are formed logically or intellectually, often used in scientific or philosophical context to explain phenomena.

Distorted Interpretation

The misrepresentation or erroneous understanding of the meaning or significance of something, often due to preconceived notions or biases.

Cognitive Revolution

A significant shift in psychology during the 1950s and 1960s, emphasizing research on how people think, understand, and remember information.