An Investor Purchased a Put Option and Wrote a Call

question 2

Multiple Choice

An investor purchased a put option and wrote a call option at an exercise price higher than that of the long put option.The strategy is known as a:

• A) long straddle.
• B) horizontal bear spread.
• C) short straddle.
• D) vertical bear spread.

---

Definitions:

Retrospective Study

A research method that looks back at historical data or events to analyze outcomes or associations.

Childhood Obesity

A serious medical condition affecting children and adolescents, characterized by excess body fat that may have adverse effects on health.

Dose-response

The relationship between the amount of a substance or drug taken and the intensity of the effect it produces, illustrating how incremental increases in dose can lead to changes in response.

Causal

Pertaining to the relationship between cause and effect, indicating that one event is the result of the occurrence of the other event.