Exhibit 13-9
USE THE FOLLOWING INFORMATION FOR THE NEXT QUESTION(S) $\begin{array}{ccc}\text { Strike Price } & \text { Put Price } & \text { Call Price } \\\hline \$ 32.50 & \$ 2.85 & \$ 1.65\end{array}$

question 17

Multiple Choice

Exhibit 13-9
USE THE FOLLOWING INFORMATION FOR THE NEXT QUESTION(S)
Consider the following information on put and call options for Bank of Montreal
$\begin{array}{ccc}\text { Strike Price } & \text { Put Price } & \text { Call Price } \\\hline \$ 32.50 & \$ 2.85 & \$ 1.65\end{array}$
-Refer to Exhibit 13-9. Calculate the payoffs of a long strap at a stock price at expiration of $20 and a stock price at expiration of $45.

• A) $6.35, $18.85
• B) $29.65, $42.15
• C) $21.65, $34.15
• D) $8, $8
• E) -$8, -$8

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Definitions:

Induction Motors

A type of electric motor that operates on the principle of electromagnetic induction, where the rotor is not directly supplied with electrical power but obtains it via magnetic fields from the stator.

Chemical Reaction

A process that leads to the transformation of one set of chemical substances to another.

Capacitance

Capacitance is the property of an electrical component or circuit to store an electrical charge, measured in Farads, and is a fundamental aspect of capacitors and capacitive devices.

AC Power Supply

A device that provides electrical power in the form of alternating current (AC) to electronic devices and systems.