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.

---

Definitions:

Sociability

The trait or quality of being sociable, describing an individual's tendency to engage and interact positively with others in social settings.

Self-Confidence

The belief in one's abilities and judgment, often seen as a crucial trait for leaders to inspire trust and respect from followers.

Affective Domain

Relates to emotions and feelings, highlighting the impact of emotional processes in learning, behaviour, and performance.

Cognitive Domain

Relates to mental skills and intellectual activities, including thinking, understanding, learning, and remembering.