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

question 126

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 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:

Fair Hearing

A judicial or administrative procedure that guarantees an individual the opportunity to express their case in a just and equitable manner before making a decision that affects their rights or interests.

Right of Privacy

The right of individuals to keep their personal information confidential and protected from unauthorized use in the workplace.

Autonomy

The degree of independence and self-direction that an individual or entity has in making decisions or controlling activities.

Wrongful Discharge

Termination of an employee's contract in violation of legal or contractual terms.