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Exhibit 22.2
Use the Information Below for the Following Problem(S)
-Refer to Exhibit 22.2.If you establish a long straddle using the options with a 95 exercise price,what is your dollar gain or loss if at expiration XYZ is still trading at 101 11/16?
Plane Operating Costs
The expenses associated with operating an aircraft, including fuel, maintenance, crew, and landing fees.
Variable Cost
A cost that changes in proportion with the level of output or activity.
Fixed Cost
Expenses that do not change with the level of output or sales, remaining constant even if the business activity varies.
Activity Variance
The difference between what was expected in terms of expenses or revenues for a particular activity level and what was actually realized.
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