USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 50

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

-Refer to Exhibit 16.8. If you establish a long strap using the options with a 95 exercise price, what is your dollar gain or loss if at expiration XYZ is still trading at 101 11/16?

• A) $81.25 loss
• B) $1,606.25 gain
• C) $1,606.25 loss
• D) $268.75 loss
• E) $268.75 gain

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Definitions:

Terrarium

A sealed glass container containing soil and plants, and sometimes small animals, kept for observation or for decorative purposes.

Dark-Colored Crickets

Varieties of crickets that possess a darker pigmentation, potentially offering an advantage in certain environments.

Oak Tree

A type of tree or shrub belonging to the genus Quercus, known for its strength, longevity, and acorn production.

Plants

Members of the archaeplastid supergroup, distinguished by development of sporophytes from multicellular embryos enclosed in maternal tissues; also called land plants.