Exhibit 13-10 USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT QUESTION(S)

question 68

Multiple Choice

Exhibit 13-10
USE THE FOLLOWING INFORMATION TO ANSWER THE NEXT QUESTION(S)
GE Corporation has a put option selling for $2.90 and a call option selling for $1.95, both with a strike price of $29.00.
-Refer to Exhibit 13-10. What would the net value of a long straddle position be if the stock price at expiration is $35?

• A) -$7.15
• B) -$1.15
• C) $1.15
• D) $7.15
• E) $36.15

---

Definitions:

Solution

The value or set of values that satisfies a given mathematical equation or inequality.

Inequality

A mathematical sentence indicating that two expressions are not equal, using symbols such as <, >, ≤, or ≥.

Solve

The process of finding the value(s) of variable(s) that satisfy an equation, inequality, or system of equations.