Which of the Follow Options Strategies Are Consistent in Their

question 3

Multiple Choice

Which of the follow options strategies are consistent in their belief about the future behavior of the underlying asset price?

• A)Selling calls and selling puts
• B)Buying calls and buying puts
• C)Buying calls and selling puts
• D)none of the options

---

Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance premiums.

Direct Labor

The wages and salaries for those employees directly involved in the manufacturing process of a company's products.

Fixed Cost

A cost that does not change with an increase or decrease in the amount of goods or services produced or sold.

Per Unit Basis

A method of expressing costs, pricing, or other financial measures on a per single unit of product or service basis.