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.

---

Definitions:

Beginning Finished Goods

The inventory of finished products available for sale at the start of an accounting period.

Ending Finished Goods

The value of goods available for sale at the end of an accounting period.

Production Budget

An estimate of the total cost of production, including materials, labor, and overhead, for a specific period.

Beginning Finished Goods

Refers to the inventory of completed products that a company has on hand at the start of an accounting period.