Spreads are used to:
A)increase the return potential
B)circumvent option commissions
C)reduce risk in an option position.
D)all of the above are true.

Name: Spreads are used to: A)increase the return potential B)circumvent option commissions C)reduce risk in an option position. D)all of the above are true.
Brand: Quizplus
Rating: 4.9 (44 reviews)

Question

Quizplus · Accepted Answer

Spreads are primarily used to reduce risk in an option position by combining different options to limit potential losses.

Spreads Are Used To