A Calendar Spread Requires the Purchase and Sale of Two

question 6

Multiple Choice

A calendar spread requires the purchase and sale of two calls or two puts in the same stock with

• A) The same expiration date but different exercise prices.
• B) The same exercise price but different expiration dates.
• C) Different exercise prices and different expiration dates.
• D) The same exercise price and the same expiration month.
• E) Traded in different markets.

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Definitions:

Cohesive Forces

The attractive forces between like molecules that are responsible for the tendency of certain materials to stick together.

DNA Replication

The process by which DNA is duplicated; ordinarily a semiconservative process in which a double helix gives rise to two double helices, each with an "old" strand and a newly synthesized strand.

Radioactive Isotopes

Atoms of the same element that have different numbers of neutrons in their nuclei, causing them to be unstable and decay, releasing radiation.

Phosphate Groups

Phosphate groups are chemical groups containing phosphorus and oxygen; they play a key role in energy transfer and molecular signaling in cells.