Exhibit 22 $$\begin{array} { c c c } \text { otrike Price } & \text { Put Price } & \text { Call Price } \\\hline\$ 32.50 & \$2.85 & \$1.65\end{array}$$

question 64

Multiple Choice

Exhibit 22.4
Use the Information Below for the Following Problem(S)
Consider the following information on put and call options for Citigroup
$$\begin{array} { c c c } \text { otrike Price } & \text { Put Price } & \text { Call Price } \\\hline\$ 32.50 & \$2.85 & \$1.65\end{array}$$
-Refer to Exhibit 22.4.A short straddle is an appropriate strategy if

• A) An investor wishes to generate additional income.
• B) An investor wished to insure against a decline in share values.
• C) An investor expected share prices to be volatile.
• D) An investor expected share prices to remain in a trading range.
• E) An investor expected share prices to be volatile, but was inclined to be bullish.

---

Definitions:

Reconciling Items

Entries made to adjust or reconcile differences between two sets of records or accounts.

Bank Statement

A document provided by a bank that summarizes an account holder's financial transactions and balances over a specified period, typically monthly.

Cash Balance

The amount of cash that a company or an individual has available at any given time.

Journal Entry

An accounting record of a transaction where the total amounts in the debit and credit columns are equal.