Exhibit 22.7 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 105

Multiple Choice

Exhibit 22.7
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
GE Corporation has a put option selling for $2.90 and a call option selling for $1.95, both with a strike price of $29.00.
-Refer to Exhibit 22.7. What would the net value of a short straddle position be if the stock price at expiration is $35?

• A)-36.15
• B)-7.15
• C)-$1.15
• D)$1.15
• E)$7.15

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Definitions:

Monroe Administration

The presidential term of James Monroe, the fifth President of the United States, from 1817 to 1825, noted for the Monroe Doctrine, pronouncing opposition to European colonialism in the Americas.

Political Harmony

A state of agreement and cooperation among different political factions or parties, often resulting in more effective governance.

Intellectual Capacity

The ability of an individual to think, reason, and understand, encompassing aspects like creativity, problem-solving, and memory.

Property Ownership

The legal right to possess, use, and control property, including land and personal assets, within the bounds of law.