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 12

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. A short straddle is an appropriate strategy if

• A) An investor wishes to generate additional income.
• B) An investor wished to insure against a decline in share values.
• C) An investor expected share prices to be volatile.
• D) An investor expected share prices to remain in a trading range.
• E) An investor expected share prices to be volatile, but was inclined to be bullish.

---

Definitions:

Central Route Persuasion

A persuasion technique that requires thorough understanding of the message's content, resulting in enduring changes in attitude.

Cognitive Dissonance

A psychological theory which proposes that individuals experience discomfort when holding two or more conflicting cognitions, leading them to change their beliefs, attitudes, or actions to reduce the discomfort.

Implicit Prejudice

Unconscious or automatic negative evaluations or beliefs about a group or its members.

Explicit Prejudice

Openly expressed negative attitudes or beliefs toward a group or its members based on their perceived characteristics.