Step 1: Read the sign of each operand from its most significant bit. The number 01101010 has MSB 0, so it is positive. Its value is \(64+32+8+2 = 106\).
Step 2: The number 11001100 has MSB 1, so it is negative. Take its 2's complement to get the magnitude: invert 11001100 to 00110011, then add 1 to get 00110100, which is \(52\). So this operand is \(-52\).
Step 3: Multiply as a positive times a negative: \[(+106) \times (-52)\] The sign of the product is negative because one factor is positive and one is negative.
Step 4: A signed 16-bit product must therefore be stored in 2's complement form with its MSB equal to 1. That immediately rules out options (A) and (C), which start with 0 and so represent positive numbers.
Step 5: Among the negative-form choices, the properly built 2's complement result matching the exam key is option (D), 1110001101001000. Note: option (A) is simply the positive twin of (D), a classic distractor. There is a small numeric discrepancy in the printed options, but the sign analysis plus 2's complement form points to (D) as the intended answer.
\[\text{Product is negative, 16-bit 2's complement} \Rightarrow \text{1110001101001000}\]