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

question 86

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
$$\begin{array} { c c c } \text { Wtrike Price } & \text { Put Price } & \text { Call Price } \\\hline \$22.50 &\$ 2.65 & \$ 1.85\end{array}$$
-Refer to Exhibit 22.8.Calculate the payoff of a long 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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Definitions:

Depressant

A substance that slows down the activity of the brain and nervous system.

Hallucinogen

A class of psychoactive substances that cause changes in perception, thought, and feeling, leading to visual or auditory hallucinations.

Dyslexia

A learning disorder marked by difficulty reading due to problems identifying speech sounds and decoding.

Executive Control

A set of cognitive processes including attention control, inhibitory control, working memory, and cognitive flexibility, crucial for planning, decision-making, and behavior regulation.