USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 13

Multiple Choice

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 16.6. What would the net value of a short straddle position be if the stock price at expiration is $35?

• A) -36.15
• B) -7.15
• C) -$1.15
• D) $1.15
• E) $7.15

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Definitions:

Social Media

Digital platforms that enable users to create, share content, or participate in social networking.

Online Rumors

Unverified information spread through internet platforms, which can be misleading or false.

Company's Reputation

The public perception of a company's trustworthiness, quality, and reliability, based on its past actions and communication.

Crisis Management Plan

A strategic document outlining the procedures an organization should follow to handle a crisis or emergency situation effectively.