Chapter 06 · Section 6.1

Diagonal Spread

What option positions can be used to create a diagonal spread? Options with:

• a) different expiration dates and different exercise prices.
  Yes. Exercise prices and expiration dates are different in a diagonal spread. In order to create the spread you can use either Calls or Puts that are listed diagonally within their respective price tables. Continue
  b) different expiration dates and the same exercise price.
  c) same expiration date and different exercise prices.

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