An order to buy a put option with a strike price of $100 and simultaneously sell a put option with a strike price of $105 is an example of:

Question

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This is an example of a spread order, specifically a bear put spread. The investor is buying a put option with a lower strike price ($100) and simultaneously selling a put option with a higher strike price ($105). This strategy is designed to profit from a decline in the underlying asset's price, but limits potential losses by selling the higher strike put option.

An Order to Buy a Put Option with a Strike