Amy Bought a $50 May Call and a $50 May

question 83

Multiple Choice

Amy bought a $50 May call and a $50 May put on the same underlying stock. This strategy is referred to as which one of the following?

• A)bull spread
• B)bear spread
• C)parity play
• D)short straddle
• E)long straddle

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Definitions:

Horizontal Mergers

The combination of two or more firms operating at the same level in an industry.

Clayton Act

A U.S. antitrust law passed in 1914, aimed at promoting fair competition and preventing unlawful monopolies by regulating certain business practices.

Department of Justice

A federal executive department of the U.S. government responsible for the enforcement of the law and administration of justice.

Per Se Violations

Actions that are considered inherently illegal under antitrust laws, without needing to prove their harm on competition.