Multiple Choice
You buy a call option on Merritt Corp. with an exercise price of $50 and an expiration date in July, and you write a call option on Merritt Corp. with an exercise price of $55 and an expiration date in July. This is called a ________.
A) time spread
B) long straddle
C) short straddle
D) money spread
Correct Answer:
Verified
Correct Answer:
Verified
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