Answer:
diagonal spread
Explanation:
Spread is basically a sale and purchase of a call. So here the the types of spreads determine the relationship between the strike price and the expiration dates of all options involved in the trade.
In this example investor has sold 1 ABC Jan 50 Call and has bought 1 ABC Apr 60 Call. This means he bought the option ABC with the longer expiration date and with a higher strike price and sold the option ABC with the near expiration date and the lower strike price. Here both the expiration and strike price are different. So this is an example of diagonal spread.
The option horizontal spread is incorrect because it is a spread that depicts the difference in expiration dates but strike price is the same. Here both the expiration and strike price are different.
The option straddle is incorrect because it is a spread in which both options have the same expiry date and same strike price. Here both the expiration and strike price are different.
The option dialogue spread is not a valid option too.
The option Combination is also suitable because this is an example of Combination and combinations include option spread trades such as vertical spreads, horizontal spreads, and diagonal spreads.
So the most suitable option is diagonal spread which is an example of Combination.
Dixon ills has fundamentally historically and natural law
Answer:
Month incurred Amount June July August
June 75,000 37500 18,750 18,750
July 95,000 47,500 23,750
August 95,000 47,500
37,500 66,250 90,000
The expected cash receipts are:
June = $37,500
July = $66,250
August = $90,000
Explanation:
The pattern of collection of sales is that 50% are collected in the months of sales while 25% each will be collected in the following month and following 2 months. For instance, 50% of June sales are collected in June, 25% are realized in July and 25% are collected in August. 50% of July sales are realized in July and 25% are collected in August.
