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Bubba buys one XYZ October 80 put and sells one XYZ October 70 put.
What is his position called?
Suggested Answer: B
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money spread. Since the strike prices are different, but not the expiration date, this is a money spread (sometimes called a ''price spread'' or a ''vertical spread'').
11 comments · newest first
GA
Gaynell
11 months ago
Yeah, it's a money spread for sure!
CA
Carmen
12 months ago
Wait, is it really called a combination? Sounds off.
DE
Derick
12 months ago
I thought it was a straddle at first, but nope!
MA
Maybelle
12 months ago
Definitely not a calendar spread.
RE
Regenia
1 year ago
That's a bull put spread!
KA
Katheryn
1 year ago
I feel like this is definitely not a calendar spread, but I can't remember the exact term for this setup.
AD
Adolph
1 year ago
I practiced a similar question, and I think it was called a straddle, but that doesn't seem right here.
GE
Genevive
1 year ago
I'm not entirely sure, but I remember something about spreads. Could it be a money spread?
YO
Yolande
1 year ago
I think this might be a combination since he's buying one put and selling another at a different strike price.
IS
Isreal
1 year ago
Hmm, I'm a bit unsure about this one. The wording is a bit confusing, and I'm not totally familiar with all the Incoterms. I'll have to think it through carefully and make sure I understand the differences between the options.
JO
Joye
1 year ago
Okay, the instructions seem clear. I'll make sure to check the status of the services after the install and then access the web interface.