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Exhibit 22 -Refer to Exhibit 22

question 99

Multiple Choice

Exhibit 22.2
Use the Information Below for the Following Problem(S)
XYZ CORP Exercise  NYSE  Date  Price  Price  Clase  Calls  OCT 85163/410111/16 OCT 901210111/16 OCT 9575/810111/16 Puts  OCT 851/810111/16 OCT 903/810111/16 OCT 9513/1610111/16\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 strip 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?

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Definitions:

Pyroclastic Flows

Fast-moving currents of hot gas and volcanic materials (such as ash) that flow down the sides of a volcano during an explosive eruption.

Eruption Column

A towering cloud of ash, gas, and volcanic debris that rises above a volcano during an explosive eruption.

Caldera

A large, bowl-shaped volcanic depression, formed by the collapse of land following a volcanic eruption or the emptying of a magma chamber.

Basin-shaped Depression

A rounded or oval valley or hollow in the Earth's surface, typically formed by erosion or the collapse of a volcanic crater.

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