If You Were to Purchase an October Option with an Exercise

question 95

Multiple Choice

If you were to purchase an October option with an exercise price of 50 for $8 and simultaneously sell an October option with an exercise price of 60 for $2, you would be

• A) bullish and taking a high risk.
• B) bullish and conservative.
• C) bearish and taking a high risk.
• D) bearish and conservative.
• E) neutral.

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Definitions:

"You" Attitude

A communication approach that focuses on the receiver, making messages more personal by speaking directly to the reader or listener.

Oral Communication

The exchange of information or ideas using spoken words, as opposed to written or nonverbal communication.

"You" Attitude

A communication perspective that focuses on and prioritizes the audience’s interests, needs, and preferences.

Poorly Written

Describes a piece of writing that lacks clarity, coherence, grammar, or proper structure, making it difficult to understand.