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Business, 29.10.2019 03:31 george6871

One of your clients is somewhat new to options trading with multiple positions. they understand how options work, but sometimes ask questions in relation to specific positions. they put on the following options position: - purchase 1 mno july 50 put for 4 - sell 1 mno july 60 put for 11. the client calls in and asks their rr to explain a scenario where this position could lose money. which of the following describes a scenario where the client will lose money on this position? [a] the put options both expire and no exercise is made on either contract.[b] the spread between the two contracts narrows and becomes less than 7 points.[c] the spread between the two contracts widens and becomes greater than 7 points.[d] the customer sells the mno july 50 put for 6 and buys the mno july 60 put for 10.

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