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Nastasia [14]
2 years ago
11

If an investor establishes a call spread, and buys the lower exercise price and sells the higher exercise price at a net debit,

he anticipates that:_________
Social Studies
1 answer:
lina2011 [118]2 years ago
5 0

If an investor establishes a call spread, buys the lower exercise price, and sells the higher exercise price at a net debit, he anticipates that <u>the spread will widen</u>.

A straddle is an options strategy that buys both put and call options on the same underlying security with the same expiration date and strike price.

You can buy and sell straddles. A long straddle buys both calls and puts options on the same underlying stock with the same strike price and expiration date. If the underlying moves significantly in either direction before expiry, you can make a profit.

A call option buyer can hold the contract until the expiration date. At that time, you can either acquire 100 shares or sell the option contract at the market price of the contract at any time before the maturity date. There is a fee for purchasing a call option called Premium.

Learn more about anticipates here brainly.com/question/27329666

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Answer:

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Explanation:

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Angelina_Jolie [31]

Answer:

Option C: action time lag.

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​B

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