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

question 135

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 a 95 exercise price, what is your dollar gain or loss if at expiration XYZ is still trading at 101 11/16?

• A) $256.25 loss
• B) $256.25 gain
• C) $925.00 loss
• D) $668.75 gain
• E) $668.75 loss

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Definitions:

Survival Clause

A contract provision that remains effective after the termination of the contract, covering aspects such as confidentiality and dispute resolution.

Evicted

The legal process by which a tenant is expelled from rented property, usually due to violation of a lease agreement.

Rent

Rent is a payment made by a tenant to a landlord in exchange for the use of a property, such as a house, apartment, or commercial space, for a specified time.

Evict

The legal process by which a landlord removes or forcibly ejects a tenant from rental property, typically due to violation of a rental agreement.