If You Were to Purchase an October Option with an Exercise

question 65

Multiple Choice

If you were to purchase an October option with an exercise price of 50 for 8 and simultaneously sell an October option with an exercise price of 60 for 2,you would be

• A) Bullish and taking a high risk.
• B) Bullish and conservative.
• C) Bearish and taking a high risk.
• D) Bearish and conservative.
• E) Neutral.

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Definitions:

Harry S Truman

The 33rd President of the United States, serving from 1945 to 1953, known for his leadership during the final stages of World War II and the early years of the Cold War.

Franklin Roosevelt

The 32nd President of the United States who led the country during the Great Depression and most of World War II, known for his New Deal domestic policies.

Foreign Policy

A government's strategy in dealing with other nations, involving diplomacy, economic measures, military action, and treaties to advance national interests.