If You Were to Purchase an October Option with an Exercise

question 65

Multiple Choice

If you were to purchase an October option with an exercise price of 50 for 8 and simultaneously sell an October option with an exercise price of 60 for 2,you would be

• A) Bullish and taking a high risk.
• B) Bullish and conservative.
• C) Bearish and taking a high risk.
• D) Bearish and conservative.
• E) Neutral.

---

Definitions:

Dementia

A general term for a decline in mental ability severe enough to interfere with daily life, often involving memory loss and difficulties with thinking, problem-solving, and language.

Cognitive Processes

Mental activities involved in acquiring, storing, retrieving, and using information, such as perception, memory, and reasoning.

Learning

The process through which experience or practice results in a relatively permanent change in behavior or potential behavior.

Memory

The cognitive function that allows an individual to store, retain, and recall information from past experiences.