Exhibit 22 -Refer to Exhibit 22

question 88

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 a 90 exercise price,what is your dollar gain or loss if at expiration XYZ is still trading at 101 11/16?

• A) $68.75 loss
• B) $68.75 gain
• C) $37.50 loss
• D) $1,200.00 loss
• E) $1,200.00 gain

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Definitions:

Berries

Small, juicy fruits with a high seed content, often colorful and consumed as food; includes strawberries, blueberries, raspberries, and many others.

Utility Function

A mathematical representation of how different quantities of goods or services generate satisfaction or utility for a consumer.

Berries

Compact, moist fruits typically suitable for eating, featuring a spherical shape, intense coloration, and flavors that span from sweet to acidic.

Nuts

Usually refers to edible seeds enclosed in a hard shell, considered healthy snacks and used as ingredients in various dishes.