The purchase of a June call with a $25 strike price on XXO stock and the sale of a June call with a $30 strike price on XXO stock is known as a
A) long straddle.
B) short straddle.
C) vertical spread.
D) horizontal spread.

Question

Quizplus · Accepted Answer

This is a vertical spread because it involves options of the same expiration date (June) but with different strike prices ($25 and $30).

The Purchase of a June Call with a $25 Strike