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13 November, 21:03

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

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  1. 13 November, 23:27
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    This strategy is known as

    Time Spread.

    Explanation:

    Time Spread:

    In financial terms, finance spread is such a trade in which we buy a thing that is expiring on a particular date and then we simultaneously, sell this expiring thing on another date.

    This term is also known as the calendar spread as well as horizontal spread. In this situation, you buy a call option on expiration date in September and purchase it with expiration date in October.
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Home » Business » You buy a call option on Summit Corp. with an exercise price of $40 and an expiration date in September, and you write a call option on Summit Corp. with an exercise price of $40 and an expiration date in October. This strategy is called a
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