Financial Risk Manager Part 1

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Explanation:

All four statements are true:

I is true: a long call and a short call can be combined into bull spreads, bear spreads, calendar spreads, and diagonal spreads.
II is true: bull and bear spreads use options with the same expiration date but different strike prices.
III is true: a calendar spread uses options with the same strike but different expirations.
IV is true: a diagonal spread uses options with different strikes and different expirations.

Therefore, the correct answer is D. All of the above.

Explanation:

All four statements are true:

I is true: a long call and a short call can be combined into bull spreads, bear spreads, calendar spreads, and diagonal spreads.
II is true: bull and bear spreads use options with the same expiration date but different strike prices.
III is true: a calendar spread uses options with the same strike but different expirations.
IV is true: a diagonal spread uses options with different strikes and different expirations.

Therefore, the correct answer is D. All of the above.

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MManit

Last updated: April 18, 2026 at 11:32

I. and IV. Only

50.0%

II. and III. Only

50.0%

II., III. and IV.

All of the above