USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 59

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

-Refer to Exhibit 16.8. If you establish a long strip 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) $256.25 loss
• B) $256.25 gain
• C) $925.00 loss
• D) $668.75 gain
• E) $668.75 loss

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Definitions:

Dying

The process of coming to an end or ceasing to exist; specifically, the process of a living being approaching death.

Off-time

Occurring or done outside the usual or expected timetable, often referring to life events.

Deaths

The end of life in organisms; the cessation of all biological functions that sustain a living organism.

Expected

A term that denotes anticipation of a specific outcome based on previous knowledge, patterns, or statistics.