题目
A butterfly spread can be created by buying a call option with a low strike of X1; buying a call option with a high strike X2 ; and selling two call options with a strike halfway between X1 and X2. Which of the following is about the upside and downside of the strategy?
选项
A.Both the upside and downside is limited.
B.Both the upside and downside is unlimited.
C.The upside is unlimited but the downside is limited.
D.The upside is limited but the downside is unlimited.
答案
A
解析
The pay-off structure to this strategy leaves the upside and downside potential at the difference between the premium collected on the calls sold and the premium paid on the calls purchased.这种策略对收益和损失进行了限制