SIE Exam Practice Question 666

Question: 666

____ Purchasing a call option and selling a call option on the same stock at the same time.

Correct Answer: B

Explanation:

A spread is the simultaneous purchase of one option and the sale of another option on the same side or position within the market. For example, purchasing a call option and selling a call option on the same stock at the same time is a spread.

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