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

question 71

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.What would the net value of a long strap position be if the stock price at expiration is $35?

• A) -$1.15
• B) -$2.30
• C) $1.15
• D) $2.30
• E) $5.20

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Definitions:

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A popular American television game show where contestants answer questions in the form of a question across various categories to win money.

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The field of creating, implementing, and managing new environments to preserve the diversity of species in areas where humans reside, work, or engage in leisure activities.