You buy a call option on Summit Corp. with an exercise price of $40 and an expiration date in September and write a call option on Summit Corp. with an exercise price of $40 and an expiration date in October. This strategy is called a _________. calendar spread long straddle short straddle money spread

Respuesta :

Answer:

Correct option is Time spread

You buy a call option on Summit Corp. with an exercise price of $40 and an expiration date in September and write a call option on Summit Corp. with an exercise price of $40 and an expiration date in October. This strategy is called a Time Spread

Explanation:

In time spread, one leg is to buy a option at specific strike price with specified expiration and one leg is to sell a option at a specific strike price with different expiration.