Which of the Following Is True of a Box Spread

question 12

Multiple Choice

Which of the following is true of a box spread?

• A) It is a package consisting of a bull spread and a bear spread
• B) It involves two call options and two put options
• C) It has a known value at maturity
• D) All of the above

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Definitions:

Strengths

Positive traits or qualities that individuals possess, which are beneficial for performance in various areas of life.

Weaknesses

Attributes or areas of one's character or abilities that are less developed or less effective than other qualities.

Holder

A legal term for an individual or entity that possesses a negotiable instrument, like a check or promissory note, and has the right to enforce it.

Instrument

A legal document that formally documents a legal or financial transaction or agreement.