Question: USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) XYZ CORP Exercise NYSE Close Date Price Price 16 3/4 12 7 5/8 1/8 3/8 13/16 101

 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) XYZ CORP Exercise

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) XYZ CORP Exercise NYSE Close Date Price Price 16 3/4 12 7 5/8 1/8 3/8 13/16 101 11/16 Calls OCT OCT 85 90 95 85 101 11/16 OCT 101 11/16 101 11/16 Puts 90 95 OCT 101 11/16 101 11/16 (i) 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 (101.6875)? (ii) 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? (iii) If you establish a long strip 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

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