If You Buy One Option and Write One Option on the Same

question 52

True/False

If you buy one option and write one option on the same underlying stock, you are creating a "spread."

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Definitions:

Executory Costs

Expenses related to executing a contract, such as maintenance and insurance costs, that are typically incurred over the contract's term.

FASB

The Financial Accounting Standards Board, responsible for establishing and improving financial accounting and reporting standards in the United States.

Financial Statements

Documents that provide an overview of a company's financial condition, including its income statement, balance sheet, and cash flow statement.