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 90

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 short straddle 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:

Inventory Account

An account in the financial statements that reflects the value of a company's goods that are available for sale or in the process of being produced for sale.

Consolidated Statement

A financial statement that includes all assets, liabilities, equity, income, expenses, and cash flows of a parent company and its subsidiaries.

Cost Of Goods Sold

Direct costs attributable to the production of goods sold by a company, including material and labor.

Parent's Share

The proportion of equity held in a subsidiary by the parent company, often representing controlling interest.