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

question 16

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 strip 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) $1,668.75 gain
• B) $1,700.00 gain
• C) $1,700.00 loss
• D) $31.25 gain
• E) $31.25 loss

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Definitions:

Emotion-Focused Coping

Attempting to alleviate stress by avoiding or ignoring a stressor and attending to emotional needs related to one’s stress reaction.

Stress Appraisal

The process by which individuals evaluate and interpret a stressful situation to determine its significance and how to manage it.

Spontaneous Remission

The unexpected improvement or cure of a disease or medical condition that occurs without medical intervention.

Type A Personality

A personality trait characterized by high levels of competitiveness, self-imposed stress, urgency, and a constant feeling of being pressed for time.