Exhibit 22 -Refer to Exhibit 22

question 107

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 XYZ were trading at $90/share and you formed a bull money spread,what is your profit if XYZ is trading at $110 at expiration?

• A) $912.50 loss
• B) $87.50 gain
• C) $87.50 loss
• D) $1,000.00 gain
• E) $1,000.00 loss

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Definitions:

Federal Deficits

The financial situation in which the government's expenditures exceed its revenues in a given fiscal year.

Public Capital

Assets owned by the public sector or government, including infrastructure like roads, bridges, schools, and hospitals that are used for public services.

Income Redistribution

The transfer of income from certain individuals or groups to others through government policies like taxation and social benefits.

Government Securities

Financial instruments issued by a government to finance its expenditure, including bonds, bills, and notes.