You Are Cautiously Bullish on the Common Stock of the Wildwood

question 79

Multiple Choice

You are cautiously bullish on the common stock of the Wildwood Corporation over the next several months. The current price of the stock is $50 per share. You want to establish a bullish money spread to help limit the cost of your option position. You find the following option quotes:

To establish a bull money spread with calls, you would ________.

• A) buy the 55 call and sell the 45 call
• B) buy the 45 call and buy the 55 call
• C) buy the 45 call and sell the 55 call
• D) sell the 45 call and sell the 55 call

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Definitions:

Virtual Goods

Non-tangible items that exist in digital form, often used within online communities, games, or virtual economies.

Personal Property

All types of property except land and the buildings on it, including movable items and intangible assets.

Real Property

Land and anything permanently affixed to it, such as buildings and trees, considered a form of real estate.

Personal Property

Items of property that are not fixed to one location and can be moved, such as furniture, vehicles, and electronics.