Solved

You Buy a Call Option on Summit Corp

Question 30

Multiple Choice

You buy a call option on Summit Corp. with an exercise price of $40 and an expiration date in September, and you write a call option on Summit Corp. with an exercise price of $40 and an expiration date in October. This strategy is called a ________.


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

Correct Answer:

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