USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 104

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

• A) $106.25 gain
• B) $106.25 loss
• C) $1,275.00 loss
• D) $1,275.00 gain
• E) $75.00 loss

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Definitions:

Sulfuric Acid

A highly corrosive strong mineral acid with molecular formula H2SO4, widely used in industry and as a laboratory reagent.

Elimination Product

A molecule resulting from the removal of atoms or groups from a reactant, typically involving the loss of a small molecule like water or hydrogen halide.

Major Organic Product

The primary product of a chemical reaction involving organic compounds which is formed in the greatest yield.

Reaction

An operation where substances combine, resulting in the creation of one or more new entities with differing physical and chemical properties.