USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 40

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 an 85 exercise price, what is your dollar gain or loss if at expiration XYZ is still trading at 101 11/16?

• A) $1,687.50 loss
• B) $3,362.50 loss
• C) $3,675.50 gain
• D) $13.00 gain
• E) $13.00 loss

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Definitions:

Negative Mood

A general, enduring state of mind characterized by negative emotions such as sadness, anxiety, or irritability.

Critical Thinking

Thinking that does not blindly accept arguments and conclusions. Rather, it examines assumptions, appraises the source, discerns hidden biases, evaluates evidence, and assesses conclusions.

DSM-5

The fifth edition of the Diagnostic and Statistical Manual of Mental Disorders, which is a standardized classification of mental disorders used by mental health professionals in the U.S.

Major Depressive Disorder

A mental health condition marked by persistent sadness or loss of interest in activities, leading to significant impairment in daily life.