The Purchase of a June Call with a $25 Strike

question 116

Multiple Choice

The purchase of a June call with a $25 strike price on XXO stock and the sale of a June call with a $30 strike price on XXO stock is known as a

• A) long straddle.
• B) short straddle.
• C) vertical spread.
• D) horizontal spread.

---

Definitions:

Chiral

A term describing molecules or objects that cannot be superimposed on their mirror images, often leading to enantiomers in molecular systems.

Asymmetric Carbons

Atoms of carbon in a molecular structure that are bonded to four different groups, leading to optical isomerism.

Ethos

The characteristic spirit, beliefs, and moral values of a culture, group, or individual, influencing attitudes and behaviors.

Basic Values

Fundamental beliefs that guide behavior and decision-making for individuals and groups.