A money spread involves buying and selling call options in the same stock with
A) the same time period and exercise price.
B) the same time period but different exercise price.
C) a different time period but same exercise price.
D) a different time period and different exercise price.
E) options in different markets.

Question

Quizplus · Accepted Answer

A money spread is a type of options spread where an investor simultaneously buys and sells call options in the same stock with different exercise prices. Therefore, the correct choice is B, where options have the same time period, but different exercise prices. The other choices do not correspond to the definition of a money spread.

A Money Spread Involves Buying and Selling Call Options in the Same