Which of the Following Is Correct

question 20

Multiple Choice

Which of the following is correct?

• A) A diagonal spread can be created by buying a call and selling a put when the strike prices are the same and the times to maturity are different
• B) A diagonal spread can be created by buying a put and selling a call when the strike prices are the same and the times to maturity are different
• C) A diagonal spread can be created by buying a call and selling a call when the strike prices are different and the times to maturity are different
• D) A diagonal spread can be created by buying a call and selling a call when the strike prices are the same and the times to maturity are different

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Definitions:

Life Insurance Premiums

The payments made to an insurance company in exchange for life insurance coverage, which can sometimes be used as a tax deduction under specific circumstances.

Time Test

A criterion often used in tax regulations to determine eligibility for certain deductions or credits, based on the amount of time spent on activities like employment or investment.

Moving Expenses

Costs associated with relocating for a job or business that are often deductible on an individual's taxes.

Full-Time Employee

An individual employed for a standard workweek, often defined by an employer as working a minimum number of hours, typically at least 35-40 hours per week.