A Long Position in a Bearish 90/100 Call Spread Plus

question 22

Multiple Choice

A long position in a bearish 90/100 call spread plus a long position in a bullish 90/100 put spread for the same maturity is:

• A)An options strategy to short the stock.
• B)An options strategy to go long the stock.
• C)Always in-the-money at maturity.
• D)A sophisticated approach to borrowing money.

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Definitions:

Floating GAAP

Generally Accepted Accounting Principles that are adaptable and can change over time with financial reporting standards.

Regulatory Accounting

Accounting practices and policies that are guided by regulatory bodies to ensure transparency, accuracy, and compliance in financial reporting.

Conflicts of Interest

Situations where a person's private interests might interfere with their professional duties or responsibilities.

Mutual Expectations

This term describes the shared, understood obligations or beliefs about future actions between two or more parties in a relationship or agreement.