What is the number of different option series used in creating a butterfly spread?
A. 1
B. 2
C. 3
D. 4
C
Three different options all with the same maturity are involved in creating a butterfly spread. The strike prices are usually equally spaced. The creator buys the low strike option, buys the high strike option, and sells two of the intermediate strike option
Business
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According to Modigliani and Miller' Proposition II without taxes:
A. the capital structure decision has no effect on the cost of equity B. investment and the capital structure decisions are interdependent C. the cost of equity increases as the use of debt in the capital structure increases
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Telemarketing that is not outsourced requires relatively little financial investment from a company
Indicate whether the statement is true or false
Business