What is the resulting position, Bubba has on the Option Clearing Corporation’s record?
A. long two XYZ July 15 calls
B. long one XYZ July 30 call
C. long two XYZ July 30 calls
D. long one XYZ July 30 call and short one XYZ July 30 call
Answer:A
What is the resulting position, Bubba has on the Option Clearing Corporation’s record?
A. long two XYZ July 15 calls B. long one XYZ July 30 call C. long two XYZ July 30 calls D. long one XYZ July 30 call and short one XYZ July 30 call
Explanation: long two XYZ July 15 calls. Double the number of contracts and half the strike price. This is similar to XYZ shareholders doubling the number of shares they hold at the lower price.