An Order to Buy a Put Option with a Strike

question 16

Multiple Choice

An order to buy a put option with a strike price of $100 and simultaneously sell a put option with a strike price of $105 is an example of:

• A) a scale order
• B) a spread order
• C) a one cancels the other order
• D) a switch order
• E) None of these answers are correct.

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Definitions:

Increased Yields

The result of agricultural practices that lead to a higher output of crops per area of cultivation.

Environmental Health

The branch of public health concerned with how environmental factors affect human health and quality of life.

Economic Profitability

A measure of the profitability of a venture after accounting for the full cost of capital, including both the cost of debt and the opportunity cost of equity.