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 98

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.Calculate the payoffs of a short straddle at a stock price at expiration of $20 and a stock price at expiration of $45.

• A) $6.35, $18.85
• B) $29.65, $42.15
• C) $21.65, $34.15
• D) $8, $8
• E) -$8, -$8

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Definitions:

Depreciation Method

A systematic approach used to allocate the cost of a tangible asset over its useful life, reflecting its consumption, wear and tear, or obsolescence.

Stockholders' Equity

The interest left in a firm's assets after liabilities are deducted, reflecting the stake of the company's owners.

Capital Expenditures

Capital employed by a business for the purchase or improvement of tangible assets like land, factories, or machinery.

Double-Declining-Balance

A method of accelerated depreciation in which an asset's book value is reduced by twice the rate of straight-line depreciation.