The Chicago Board of Trade (CBOT) catastrophe call spread options have variable payoffs that are capped at a level of less than 100 percent of extreme losses.

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The statement is true. CBOT catastrophe call spread options have variable payoffs that are capped at a level of less than 100 percent of extreme losses. This means that there is a limit to the amount of losses that can be incurred from these options.

The Chicago Board of Trade (CBOT) Catastrophe Call Spread Options