n NISM Certifications
XIII NISM Series XIII
Medium

Mr. Jones buys a put option with higher strike price and at the same time sells another put option with lower strike price, both on the same underlying share and same expiration date. This strategy is known as ______ .

Practice question from NISM Series XIII for SIF - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Butterfly spread

  2. B

    Calendar spread

  3. Bearish spread

    Correct answer

  4. D

    Bullish spread

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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