The Option Strategy Where the Holder of a Long Position

question 11

Multiple Choice

The option strategy where the holder of a long position in a stock buys a put with an exercise price lower than the current stock price and sells a call with an exercise price higher than the current stock price is known as

• A)box
• B)bear strategy
• C)bull strategy
• D)collar
• E)spread

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Definitions:

Organizing

The managerial function of arranging people and resources to work effectively together in order to achieve organizational goals.

Synchronous Communication

A type of communication where participants exchange information in real-time, such as through phone calls or video conferencing.

Examples

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Pagers

Small, wireless telecommunications devices that receive and display messages or alerts, widely used before the advent of cellular phones for instant communication.