The purchase of one option and the sale of another is known as
A)box
B)bear strategy
C)bull strategy
D)collar
E)spread

Question

Quizplus · Accepted Answer

The purchase of one option and the sale of another is a common strategy known as a spread. It can be used in both bullish and bearish market conditions, and can be tailored to the investor's risk tolerance and investment goals. The other options given in the question refer to specific strategies or combinations of options, but the generic term for buying and selling options at the same time is a spread.

The Purchase of One Option and the Sale of Another