Exhibit 22.2 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) \[\begin{array} { l c c c c } && { \text { XYZ CORP } } \\ & { \text { Exercise } } &&{ \text { NYSE } } \\ & \text { Date } & \text { Price } & \text { Price } & \text { Close } \\ \hline \text { Calls } & \text { OCT } & 85 & 163 / 4 & 10111 / 16 \\ & \text { OCT } & 90 & 12 & 10111 / 16 \\ & \text { OCT } & 95 & 75 / 8 & 10111 / 16 \\ \text { Puts } & \text { OCT } & 85 & 1 / 8 & 10111 / 16 \\ & \text { OCT } & 90 & 3 / 8 & 10111 / 16 \\ & \text { OCT } & 95 & 13 / 16 & 10111 / 16 \end{array}\] -Refer to Exhibit 22.2. If you establish a long strap using the options with an 85 exercise price, what is your dollar gain or loss if at expiration XYZ is still trading at 101 11/16?

A) $1,687.50 loss B) $3,362.50 loss C) $3,675.50 gain D) $13.00 gain E) $13.00 loss A) $1,687.50 loss B) $3,362.50 loss C) $3,675.50 gain D) $13.00 gain E) $13.00 loss

Exhibit 22.4 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Consider the following information on put and call options for Citigroup \[\begin{array} { l c c } \text { Strike Price } & \text { Put Price } & \text { Call Price } \\ \hline \$ 32.50 & \$ 2.85 & \$ 1.65 \end{array}\] -Refer to Exhibit 22.4. 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 A) $6.35, $18.85 B) $29.65, $42.15 C) $21.65, $34.15 D) $8, $8 E) -$8, -$8

Exhibit 22.2 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) \[\begin{array} { l c c c c } && { \text { XYZ CORP } } \\ & { \text { Exercise } } &&{ \text { NYSE } } \\ & \text { Date } & \text { Price } & \text { Price } & \text { Close } \\ \hline \text { Calls } & \text { OCT } & 85 & 163 / 4 & 10111 / 16 \\ & \text { OCT } & 90 & 12 & 10111 / 16 \\ & \text { OCT } & 95 & 75 / 8 & 10111 / 16 \\ \text { Puts } & \text { OCT } & 85 & 1 / 8 & 10111 / 16 \\ & \text { OCT } & 90 & 3 / 8 & 10111 / 16 \\ & \text { OCT } & 95 & 13 / 16 & 10111 / 16 \end{array}\] -Refer to Exhibit 22.2. If XYZ were trading at $90/share and you formed a bull money spread, what is your profit if XYZ is trading at $110 at expiration?

A) $912.50 loss B) $87.50 gain C) $87.50 loss D) $1,000.00 gain E) $1,000.00 loss A) $912.50 loss B) $87.50 gain C) $87.50 loss D) $1,000.00 gain E) $1,000.00 loss

Exhibit 22.1 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) \[\begin{array} { | c | c | c | c | c | } \hline \text { Option Type } & & \text { Currency } & { \text { Canadian dollar } } \\ \hline \text { Contract Size } & & 50000 & { \text { Canadian dollars } } \\ \hline \text { Expiry } & & \text { April } & \\ \hline & & & & \\ \hline \text { Strike } & \text { Call } & \text { Put } & & \\ \hline \$ 0.815 & \$ 0.0118 & & & \\ \hline \$ 0.820 & & \$ 0.0068 & & \\ \hline \end{array}\] -Refer to Exhibit 22.1. If the spot rate at expiration is $0.90 and the call option was purchased, what is the dollar gain or loss?

A) $0 B) $3750 gain C) $3660 gain D) $4650 loss E) $2680 loss A) $0 B) $3750 gain C) $3660 gain D) $4650 loss E) $2680 loss

Exhibit 22.4 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Consider the following information on put and call options for Citigroup \[\begin{array} { l c c } \text { Strike Price } & \text { Put Price } & \text { Call Price } \\ \hline \$ 32.50 & \$ 2.85 & \$ 1.65 \end{array}\] -Refer to Exhibit 22.4. A long strap 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. 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.

Exhibit 22.2 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) \[\begin{array} { l c c c c } && { \text { XYZ CORP } } \\ & { \text { Exercise } } &&{ \text { NYSE } } \\ & \text { Date } & \text { Price } & \text { Price } & \text { Close } \\ \hline \text { Calls } & \text { OCT } & 85 & 163 / 4 & 10111 / 16 \\ & \text { OCT } & 90 & 12 & 10111 / 16 \\ & \text { OCT } & 95 & 75 / 8 & 10111 / 16 \\ \text { Puts } & \text { OCT } & 85 & 1 / 8 & 10111 / 16 \\ & \text { OCT } & 90 & 3 / 8 & 10111 / 16 \\ & \text { OCT } & 95 & 13 / 16 & 10111 / 16 \end{array}\] -Refer to Exhibit 22.2. If you establish a long straddle using the options with an 85 exercise price, what is your dollar gain or loss if at expiration XYZ is still trading at 101 11/16?

A) $18.75 loss B) $18.75 gain C) $1,668.75 gain D) $1,668.75 loss E) $1,687.50 loss A) $18.75 loss B) $18.75 gain C) $1,668.75 gain D) $1,668.75 loss E) $1,687.50 loss