A Long Position in a Bearish 90/100 Call Spread Plus

question 13

Multiple Choice

A long position in a bearish 90/100 call spread plus a long position in a bullish 90/100 put spread for the same maturity is:

• A) An options strategy to short the stock.
• B) An options strategy to go long the stock.
• C) Always in-the-money at maturity.
• D) A sophisticated approach to borrowing money.

---

Definitions:

Tectorial Membrane

The tectorial membrane is a structure located within the cochlea of the inner ear; it plays a critical role in the auditory system by interacting with hair cells to facilitate hearing.

Basilar Membrane

A narrow, membrane within the cochlea of the inner ear, playing an essential role in sound perception by vibrational frequency analysis.

Cochlea

A spiral-shaped, fluid-filled structure in the inner ear that is essential for converting sound waves into electrical signals that can be interpreted by the brain.

Birdsong

Vocal sounds made by birds, which can serve various purposes such as attracting mates, defending territory, or signaling danger.