Exhibit 13-8
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S)

question 131

Multiple Choice

Exhibit 13-8
USE THE FOLLOWING INFORMATION FOR THE NEXT PROBLEM(S) $\begin{array}{c}\quad\quad\quad\quad\text { XYZ CORP }\\\begin{array}{cccc}\hline &{ \quad\quad\quad\text { EXERCISE } } & & { \quad\quad\quad\text { NYSE } } \\\hline&\text { DATE } & \text { PRICE } & \text { PRICE } & \text { CLOSE } \\\hline \text {CALLS } & \text { OCT } & 85 & 163 / 4 & 10111 / 16 \\&\text { OCT } & 90 & 12 & 10111 / 16 \\&\text { OCT } & 95 & 75 / 8 & 10111 / 16 \\ \text { PUTS } &\text { OCT } & 85 & 1 / 8 & 10111 / 16 \\&\text { OCT } & 90 & 3 / 8 & 10111 / 16 \\&\text { OCT } & 95 & 13 / 16 & 10111 / 16\end{array}\end{array}$
-Refer to Exhibit 13-8. 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:

Wagner Act

Also known as the National Labor Relations Act of 1935, a foundational U.S. law that established the rights of employees to form unions and engage in collective bargaining.

Working Conditions

The environment in which an individual works, including aspects like safety, hours, physical conditions, and legal rights, which affect the worker's well-being.

Wagner Act

A foundational piece of labor law in the United States, officially known as the National Labor Relations Act of 1935, which established the rights of employees to organize, engage in collective bargaining, and take collective action including striking.

Union Representation

The act or process whereby a labor union serves as an intermediary between employees and management, negotiating labor contracts and seeking to resolve disputes.