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

question 48

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 long straddle position be if the stock price at expiration is $35?

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

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Definitions:

Unemployment Rates

The division of the labor force that is out of a job and actively on the lookout for employment.

Prime Working Age

Individuals typically between the ages of 25 and 54, considered to be in their most productive years in the labor force.

Labor-Force Participation Rates

The ratio of the number of individuals actively participating in the labor force to the total number of individuals eligible to participate.

Routine Household Tasks

Involves daily or regular activities required to maintain a household, such as cleaning, cooking, and laundry.