Consider a Condor Made Up of Calls at Strikes 90,95,100,105,and

question 21

Multiple Choice

Consider a condor made up of calls at strikes 90,95,100,105,and a butterfly call spread at strikes 90,97.5,105.Which of the following statements is valid?

• A)A condor is worth less than the butterfly spread irrespective of the level of the stock price.
• B)A condor is worth more than the butterfly spread irrespective of the level of the stock price.
• C)A condor is worth less than the butterfly spread when the stock price is less than 90.
• D)A condor is worth more than the butterfly spread when the stock price is greater than 105.

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Discovered

The act of finding something or someone that was previously unknown or unrecognized.

Nativist

A perspective in psychology and linguistics that suggests certain skills or abilities are "native" or hard-wired into the brain at birth.

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