In a money spread, an investor would
A) buy two in-the-money call options on the same stock with different exercise dates.
B) buy two out-of-the-money call options on the same stock with different exercise dates.
C) sell two in-the-money call options on the same stock with different exercise dates.
D) sell an out-of-the-money call and purchase an in-the-money call on the same stock with the same exercise date.
E) sell two out-of-the-money call options on the same stock with different exercise dates.

Question

Quizplus · Accepted Answer

The Answer of In a money spread, an investor would
A) buy two in-the-money call options on the same stock with different exercise dates.
B) buy two out-of-the-money call options on the same stock with different exercise dates.
C) sell two in-the-money call options on the same stock with different exercise dates.
D) sell an out-of-the-money call and purchase an in-the-money call on the same stock with the same exercise date.
E) sell two out-of-the-money call options on the same stock with different exercise dates.

In a Money Spread, an Investor Would