You Buy a Call Option and a Put Option on General

question 65

Multiple Choice

You buy a call option and a put option on General Electric. Both the call option and the put option have the same exercise price and expiration date. This strategy is called a ________.

• A) time spread
• B) long straddle
• C) short straddle
• D) money spread

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Definitions:

Priming

Priming is a psychological term referring to the process by which exposure to a stimulus influences a response to a subsequent stimulus, without conscious guidance or intention.

Schemas

Cognitive frameworks or concepts that help individuals organize and interpret information from the world around them.

Implicit Memories

Memories that are not consciously recalled but influence behaviors and skills, such as procedural memory for tasks.

Subliminal Stimuli

Stimuli presented below the threshold of conscious awareness, which can nonetheless affect thoughts, feelings, or actions.