A Spread Involves

question 10

Multiple Choice

A spread involves

• A)buying one option and shorting the same type of option on the same stock. The options may have either different strike prices or different expiration dates.
• B)buying a call option and shorting a put option on the same stock with the same expiration date but different strike prices.
• C)buying a call and buying a put on the same stock. The options typically have the same strike prices and the same expiration dates.
• D)buying a put option and shorting a call option on the same stock with different expiration dates, but the same strike prices.

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Definitions:

Nickel-Cadmium

A type of rechargeable battery that uses nickel oxide hydroxide and metallic cadmium as electrodes.

Nicad Cells

Nickel-Cadmium cells, a type of rechargeable battery known for its robustness and reliability in a wide range of temperatures.

Charged

A state of having an imbalance of electric charge, either positive or negative, which can result in electrostatic attraction or repulsion.

Electric Power

The rate, per unit time, at which electrical energy is transferred by an electric circuit, typically measured in watts.