Exhibit 22 $$\begin{array} { c c c } \text { otrike Price } & \text { Put Price } & \text { Call Price } \\\hline\$ 32.50 & \$2.85 & \$1.65\end{array}$$

question 102

Multiple Choice

Exhibit 22.4
Use the Information Below for the Following Problem(S)
Consider the following information on put and call options for Citigroup
$$\begin{array} { c c c } \text { otrike Price } & \text { Put Price } & \text { Call Price } \\\hline\$ 32.50 & \$2.85 & \$1.65\end{array}$$
-Refer to Exhibit 22.4.A long straddle is an appropriate strategy if

• A) An investor wishes to generate additional income.
• B) An investor wished to insure against a decline in share values.
• C) An investor expected share prices to be volatile.
• D) An investor expected share prices to remain in a trading range.
• E) An investor expected share prices to be volatile, but was inclined to be bullish.

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Definitions:

First-Past-The-Post

An electoral system in which candidates compete in single-member districts, with the winner being the candidate who receives the most votes, regardless of whether or not a majority is achieved.

Electoral System

is a set of rules that determine how elections and referendums are conducted and how their results are determined.

Model

A simplified representation of a system or phenomenon, often used in scientific research or to demonstrate complex processes in a comprehensible manner.

Al-Qaeda

An international Islamist extremist terror organization responsible for numerous attacks around the world, including the September 11 attacks in the United States.