Exhibit 22 -Refer to Exhibit 22

question 36

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 strap 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?

• A) $81.25 loss
• B) $1,606.25 gain
• C) $1,606.25 loss
• D) $268.75 loss
• E) $268.75 gain

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Definitions:

Hippocampus

A region of the brain associated with memory formation, learning, and emotions.

Infantile Amnesia

Inability to recall events that occur prior to the age of three or so; also termed childhood amnesia.

Serial-position Effect

A memory phenomenon in which recall accuracy varies as a function of an item's position in a study list, with better recall of items at the beginning and end.