What trading strategy creates a reverse calendar spread

Reference no: EM131237180

1. What trading strategy creates a reverse calendar spread?

2. What is the difference between a strangle and a straddle?

3. A call option with a strike price of $50 costs $2. A put option with a strike price of $45 costs $3. Explain how a strangle can be created from these two options. What is the pattern of profits from the strangle?

4. Use put-call parity to relate the initial investment for a bull spread created using calls to the initial investment for a bull spread created using puts.

Reference no: EM131237180

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