Hull_OFOD9e_MultipleChoice_Questions_and_Answers_Ch12

Hull_OFOD9e_MultipleChoice_Questions_and_Answers_Ch12 -...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Hull: Options, Futures, and Other Derivatives, Ninth Edition Chapter 12: Trading Strategies Involving Options Multiple Choice Test Bank: Questions with Answers 1. Which of the following creates a bull spread? A. Buy a low strike price call and sell a high strike price call B. Buy a high strike price call and sell a low strike price call C. Buy a low strike price call and sell a high strike price put D. Buy a low strike price put and sell a high strike price call Answer: A A bull spread is created by buying a low strike call and selling a high strike call. Alternatively, it can be created by buying a low strike put and selling a high strike put. 2. Which of the following creates a bear spread? A bear spread is created by buying a high strike call and selling a low strike call. Alternatively, it can be created by buying a high strike put and selling a low strike put. 3. Which of the following creates a bull spread? A bull spread is created by buying a low strike call and selling a high strike call. Alternatively, it can be created by buying a low strike put and selling a high strike put. 4. Which of the following creates a bear spread?
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern