The Purchase of a June 25 Call on XXO Stock

question 132

Multiple Choice

The purchase of a June 25 call on XXO stock and the sale of a June 30 call on XXO stock is known as a

• A)long straddle.
• B)short straddle.
• C)vertical spread.
• D)horizontal spread.

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Definitions:

General Partners

Individuals in a partnership who are responsible for the management of the partnership and are liable for its debts.

Foreign Limited Partnerships

Partnerships formed in one jurisdiction but doing business in another where the liability of some partners is limited.

Low-profit Limited Liability Company

A classification of LLC that combines the legal and tax flexibility of a traditional LLC, the social benefits of a nonprofit organization, and a commitment to limited profit distribution.

Socially Beneficial

Refers to actions, policies, or practices that have a positive impact on society or the community as a whole.