What Is a Description of the Trading Strategy Where an Investor

question 15

Multiple Choice

What is a description of the trading strategy where an investor sells a 3-month call option and buys a one-year call option,where both options have a strike price of $100 and the underlying stock price is $75?

• A) Neutral Calendar Spread
• B) Bullish Calendar Spread
• C) Bearish Calendar Spread
• D) None of the above

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Definitions:

Atkinson and Shiffrin

Known for proposing the multi-store model of memory, which describes how information is transferred from sensory memory, to short-term memory, and finally to long-term memory.

Penfield and Freud

Refers to no direct association as Penfield was a neurosurgeon known for his work on the human brain, and Freud was a psychoanalyst famous for his theories on the unconscious mind; however, both contributed significantly to the understanding of human psychology.

Short-term Memory

A component of human memory system capable of holding a small amount of information in an active, readily available state for a short period of time.

Cognitive Dissonance

The distress felt by a person due to the presence of two or more conflicting beliefs, ideas, or values within their mind simultaneously.