Exhibit 22 $$\begin{array} { l c c } \text { Strike Price } & \text { Put Price } & \text { Call Price } \\\hline \$ 22.50 & \$ 2.65 & \$ 1.85\end{array}$$

Multiple Choice

Exhibit 22.8
USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
Consider the following information on put and call options for a common stock $$\begin{array} { l c c } \text { Strike Price } & \text { Put Price } & \text { Call Price } \\\hline \$ 22.50 & \$ 2.65 & \$ 1.85\end{array}$$
-Refer to Exhibit 22.8. Calculate the payoff of a short straddle at an expiration stock price of $20.

A) -$4.50
B) -$2.00
C) $2.00
D) $4.50
E) $20.50