The Purchase of One Option and the Sale of Another

question 50

Multiple Choice

The purchase of one option and the sale of another is known as

• A)box
• B)bear strategy
• C)bull strategy
• D)collar
• E)spread

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Definitions:

Basic Overheads

The routine, essential expenses incurred in the operation of a business, such as rent, utilities, and salaries.

Working Capital

The difference between a company's current assets and current liabilities, indicating its short-term financial health.

Cash Outflows

Money that is spent or transferred out of a business, project, or venture.

Variable Costs

Expenses that change in proportion to the activity of a business, such as costs for raw materials or production costs.