A Spread That Is Profitable If the Options Are In-The-Money

question 23

True/False

A spread that is profitable if the options are in-the-money is called a money spread.

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Definitions:

Marginal Cost

The cost of producing one additional unit of a product, often used to decide the amount of production.

Profit Maximizing

A company's strategy aiming to achieve the highest possible profit given its products, market conditions, and operational costs.

Units of Output

The individual items or quantities of service produced by a company, sector, or economy.

Demand Curve

A visual representation that shows the relationship between the price of a product and the quantity of it that consumers are willing and able to purchase at various prices.