n NISM Certifications
XIII NISM Series XIII
Medium

Which of these options is an example of a Calendar Spread?

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

    Going short on the underpriced futures contract of one month and buying the overpriced futures of another month

  2. B

    Buying stock futures while shorting the stock

  3. Buying the underpriced futures of one month and selling the overpriced futures of another month

    Correct answer

  4. D

    Going short on stock futures while simultaneously buying the stock

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

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