USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 26

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

-Refer to Exhibit 16.8. If you establish a long straddle using the options with an 85 exercise price, what is your dollar gain or loss if at expiration XYZ is still trading at 101 11/16?

• A) $18.75 loss
• B) $18.75 gain
• C) $1,668.75 gain
• D) $1,668.75 loss
• E) $1,687.50 loss

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Definitions:

Deep Pressure

A tactile sensory input that involves firm, steady pressure applied to the body to help reduce stress and anxiety.

Proprioception

The awareness of the positioning and coordination of one's body parts, along with the amount of force being applied during physical activity.

Sensory Receptors

Specialized cells or nerve endings that respond to changes in the environment by generating electrical signals.

Meissner Corpuscles

Nerve endings in the skin that are specialized to detect light touch sensitivity.