A Calendar Spread Requires the Purchase and Sale of Two

question 102

Multiple Choice

A calendar spread requires the purchase and sale of two calls or two puts in the same stock

• A) With the same expiration date but different exercise prices.
• B) With the same exercise price but different expiration dates.
• C) With different exercise prices and different expiration dates.
• D) With the same exercise price and the same expiration month.
• E) Traded in different markets.

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Definitions:

Health-Care Powers

Legal authority granted to an individual (through a document or decree) to make medical decisions on behalf of another person.

Living Trust

A trust created by the grantor (settlor) and effective during his or her lifetime.

Intestacy Law

Legal provisions that govern the distribution of a deceased person's estate when they die without a valid will, determining how assets are allocated among survivors.

Estate Planning

Planning in advance how one’s property and obligations should be transferred on one’s death. Wills and trusts are two basic devices used in estate planning.