What Is a Description of the Trading Strategy Where an Investor

question 15

Multiple Choice

What is a description of the trading strategy where an investor sells a 3-month call option and buys a one-year call option,where both options have a strike price of $100 and the underlying stock price is $75?

• A) Neutral Calendar Spread
• B) Bullish Calendar Spread
• C) Bearish Calendar Spread
• D) None of the above

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Definitions:

Perfect Tender Rule

A rule requiring the seller to deliver goods to the buyer that exactly meet the terms of the contract, without any deviation.

Defective

A condition wherein a product does not operate as intended or expected, often leading to a potential hazard or inefficiency.

Reject Shipment

The act of refusing to accept delivery of goods or services due to non-conformance with the agreed terms.

Entire Shipment

A term indicating that a contract or sale involves the delivery of all goods in a single consignment, not in parts.