Multiple Choice
Spreads are used to:
A) increase the return potential
B) circumvent option commissions
C) reduce risk in an option position.
D) all of the above are true.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q4: A call option written against stock owned
Q8: Which of the following is not a
Q9: A stock investor wants to hedge the
Q14: Stock market index options are available on
Q15: If the price of the common stock
Q17: The two basic spreads are the:<br>A)time spread
Q33: A writer of a call can terminate
Q51: To provide insurance against declining prices on
Q55: The standard option contract is for:<br>A) 10
Q71: The writer of a naked call faces:<br>A)