You purchased one Coca Cola March 50 call and sold one Coca Cola March 55 call. Your strategy is known as
A) a long straddle.
B) a horizontal spread.
C) a money spread.
D) a short straddle.
E) None of the options are correct.

Question

Quizplus · Accepted Answer

This strategy is known as a money spread (or vertical spread), where you buy and sell options of the same class (calls or puts) with different strike prices.

You Purchased One Coca Cola March 50 Call and Sold