Which of the Following Is Correct

question 5

Multiple Choice

Which of the following is correct?

• A) A calendar spread can be created by buying a call and selling a put when the strike prices are the same and the times to maturity are different
• B) A calendar spread can be created by buying a put and selling a call when the strike prices are the same and the times to maturity are different
• C) A calendar spread can be created by buying a call and selling a call when the strike prices are different and the times to maturity are different
• D) A calendar spread can be created by buying a call and selling a call when the strike prices are the same and the times to maturity are different

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Definitions:

Value-Added

The enhancement a company gives its product or service before offering the product to customers, increasing its value.

Non-Value-Added

Activities or processes that consume resources but do not add value to the product or service from the customer's perspective.

Total Lead Times

The aggregate time taken from the initiation of a process until its completion, often used in manufacturing to describe the period from ordering materials to the final product delivery.

Value-Added Ratio

The proportion of time spent on non-waste activities in the production process.