Questionnaire 5 of 10 · 10 questions
Spreads and structures
Credit spreads, condors, calendars, collars and synthetic exposure.
Choose one answer per question. Explanations appear as you answer; your score appears after all ten.
- 01
You sell a $95 put and buy a $90 put for a $150 net credit. What is the most you can lose?
- 02
What is the long leg of a credit spread actually for?
- 03
An iron condor is best described as which combination?
- 04
Long a $95 put and short two $90 puts. How many contracts are uncovered below $90?
- 05
A jade lizard collects $520 with a $5-wide call spread. The stock rallies 50%. What happens?
- 06
What does a calendar spread need in order to profit?
- 07
Why is a credit spread's buying power requirement so much lower than a cash-secured put's?
- 08
Long a $100 call and short a $100 put at the same expiration. What is your exposure?
- 09
What is a collar?
- 10
What makes a poor man's covered call work?