Exhibit 22 $$\begin{array} { l c c } \text { Strike Price } & \text { Put Price } & \text { Call Price } \\\hline \$ 22.50 & \$ 2.65 & \$ 1.85\end{array}$$

question 19

Multiple Choice

Exhibit 22.8
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Consider the following information on put and call options for a common stock $$\begin{array} { l c c } \text { Strike Price } & \text { Put Price } & \text { Call Price } \\\hline \$ 22.50 & \$ 2.65 & \$ 1.85\end{array}$$
-Refer to Exhibit 22.8. Calculate the payoff of a short straddle at an expiration stock price of $20.

• A)-$4.50
• B)-$2.00
• C)$2.00
• D)$4.50
• E)$20.50

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