A vertical spread involves buying and selling call options in the same stock with
A) The same time period and price.
B) The same time period but different price.
C) A different time period but same price.
D) A different time period and different price.
E) Options in different markets.

Question

Quizplus · Accepted Answer

A vertical spread involves buying and selling call options with the same expiration date but different strike prices. This allows for a limited risk and limited reward strategy, commonly used in option trading. Therefore, option contracts with the same time period but different prices would be the best choice for a vertical spread.

A Vertical Spread Involves Buying and Selling Call Options in the Same