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A Spread Involves

Question 3

Multiple Choice

A spread involves


A) buying one option and shorting the same type of option on the same stock. The options may have either different strike prices or different expiration dates.
B) buying a call option and shorting a put option on the same stock with the same expiration date but different strike prices.
C) buying a call and buying a put on the same stock. The options typically have the same strike prices and the same expiration dates.
D) buying a put option and shorting a call option on the same stock with different expiration dates, but the same strike prices.

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