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

question 57

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 $$\begin{array} { l c c } \text { Strike Price } & \text { Put Price } & \text { Call Price } \\\hline \$ 32.50 & \$ 2.85 & \$ 1.65\end{array}$$
-Refer to Exhibit 22.4. Calculate the payoffs of a long strap at a stock price at expiration of $20 and a stock price at expiration of $45.

• A)$6.35, $18.85
• B)$29.65, $42.15
• C)$21.65, $34.15
• D)$8, $8
• E)-$8, -$8

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Definitions:

Humboldt Current

A cold ocean current that flows north along the western coast of South America, significantly affecting the climate and marine life in the region.

Ocean Currents

Large-scale movements of seawater, primarily driven by wind patterns and differences in water density.

Warm Current

A flow of warmer ocean water that moves in a defined direction and can influence the climate of nearby land areas.

Sea-Surface Temperatures

The temperature of the surface layer of the oceans, which can significantly influence weather and climate patterns.