An Investor Purchased a Call Option and Wrote a Put

question 14

Multiple Choice

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

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

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Definitions:

Audience Preview

A technique used in presentations and speeches to give the audience a brief overview of the main points to be covered.

Right Medium

The most appropriate channel or form of communication to reach and effectively convey a message to the intended audience.

Technology Choices

Decisions regarding the adoption, use, or development of technology tools and platforms in various contexts.

Cultural Audiences

Groups of people characterized by shared cultural backgrounds, values, and interests, targeted in various forms of media and communication.