Saturday, September 30, 2023
Given the following information, which is a spread?
I. DOW Apr 40 call
II. DOW Apr 50 put
III. DOW Apr 40 put
IV. DOW Apr 50 call
Long II and short III. DOW Apr 50 put, Dow Apr 40 put. A spread can be both long and short -- either two calls or two puts. In this case, the spread is two puts. [Module 7, Options, Section 5.0]
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