Exhibit 22 -Refer to Exhibit 22

question 88

Multiple Choice

Exhibit 22.2
Use the Information Below for the Following Problem(S)
$$\begin{array} { c} &&\text{XYZ CORP}\\ & \quad\quad\quad\quad \text { Exercise } & & \quad\quad\quad\quad\quad\quad { \text { NYSE } } \\& \text { Date } & \text { Price } & \text { Price } & \text { Clase } \\\hline \text { Calls } & \text { OCT } & 85 & 163 / 4 & 101\quad11 / 16 \\& \text { OCT } & 90 & 12 & 101\quad11 / 16 \\& \text { OCT } & 95 & 75 / 8 & 101\quad11 / 16 \\\text { Puts } & \text { OCT } & 85 & 1 / 8 & 101\quad11 / 16 \\& \text { OCT } & 90 & 3 / 8 & 101\quad11 / 16 \\& \text { OCT } & 95 & 13 / 16 & 101\quad11 / 16\end{array}$$
-Refer to Exhibit 22.2.If you establish a long straddle using the options with a 90 exercise price,what is your dollar gain or loss if at expiration XYZ is still trading at 101 11/16?

• A) $68.75 loss
• B) $68.75 gain
• C) $37.50 loss
• D) $1,200.00 loss
• E) $1,200.00 gain

---

Definitions:

Risks

The potential for losing something of value or the possibility of an unfavorable outcome.

Sensation Seeking Behavior

A trait characterized by the search for experiences and feelings that are varied, complex, novel, and intense.

Age

The length of time that a person or organism has been alive or a thing has existed.

Gender

Socially and culturally constructed roles, behaviors, expressions, and identities associated with being male, female, or other gender identities.