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189
9.Which of the following is correct?
A.A diagonal spread can be created by buying a call and selling a put when the strike prices are the same and the times to maturity are different
B.A diagonal spread can be created by buying a put and selling a call when the strike prices are the same and the times to maturity are different
C.A diagonal spread can be created by buying a call and selling a call when the strike prices are different and the times to maturity are different
D.A diagonal spread can be created by buying a call and selling a call when the strike prices are the same and the times to maturity are different
A.A diagonal spread can be created by buying a call and selling a put when the strike prices are the same and the times to maturity are different
B.A diagonal spread can be created by buying a put and selling a call when the strike prices are the same and the times to maturity are different
C.A diagonal spread can be created by buying a call and selling a call when the strike prices are different and the times to maturity are different
D.A diagonal spread can be created by buying a call and selling a call when the strike prices are the same and the times to maturity are different
Answer: C
Both the strike prices and times to maturity are different in a diagonal spread.
Both the strike prices and times to maturity are different in a diagonal spread.
Flashcard info:
Author: CoboCards-User
Main topic: Finance & Investment
Topic: Derivatives
Published: 27.10.2015