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

question 51

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 strap position be if the stock price at expiration is $35?

• A) -$1.15
• B) -$2.30
• C) $1.15
• D) $2.30
• E) $5.20

---

Definitions:

Units of Output

Quantities of product or service produced by a company, which can be measured to assess productivity or performance.

Quantity Supplied

The amount of a product that producers are willing and able to sell at a given price over a specified period of time.

Product Price

The amount of money required to purchase a good or service, commonly influenced by costs, demand, and supply factors.

Purely Competitive Seller

A seller in a market characterized by many buyers and sellers, free entry and exit, and a homogeneous product where no single seller can influence market price.