Exhibit 22.7 Use the Information Below for the Following Problem(S)

question 101

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

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

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Definitions:

Metric Drum Micrometer

A precision measuring instrument designed specifically for measuring the inside diameter of brake drums using the metric system, ensuring accurate maintenance and repair.

Dial-indicator

A precision tool used to measure small distances or angles accurately, often in machining processes.

Lathe Shaft

A component of a lathe machine which rotates, typically used to hold, drive, or support the workpiece being machined.

Out of Round

A condition where a component, typically a wheel or drum, does not have a perfectly circular shape, affecting performance.