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

question 24

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.Which strategy is most appropriate for an investor who expects share prices to be volatile,but was inclined to be bullish?

• A) protective put
• B) covered call
• C) long straddle
• D) short straddle
• E) long strap

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