A time spread may be executed by ________.
A) selling an option with one exercise price and buying a similar one with a different exercise price
B) buying two options that have the same expiration dates but different strike prices
C) selling two options that have the same expiration dates but different strike prices
D) selling an option with one expiration date and buying a similar option with a different expiration date

Question

Quizplus · Accepted Answer

A time spread, also known as a calendar spread, involves options with the same strike price but different expiration dates. This strategy is executed by selling an option with one expiration date and buying a similar option with a different expiration date, as described in option D.

A Time Spread May Be Executed by ________