SOA Exam IFM Concepts |24 Questions and Answers Solved Correctly

Bull Spread - Call - Long Call (K1) + Short Call (K2), K1<K2 Bull Spread - Put - Long Put (K1) + Short Put (K2), K1 < K2 Bear Spread - Call - Short Call (K1) + Long Call (K2), K1<K2 Bear Spread - Put - Short Put (K1) + Long Put (K2), K1<K2 Box Spread - Long call (put) bull spread + Long put (call) bear spread Ratio Spread - Long and short an unequal number of calls/puts with different strike prices Collar - Long Put (K1) + Short Call (K2), K1<K2 Collared Stock - Long Collar + Long Stock Straddle - Long Put (K) + Long Call (K) Strangle - Long Put (K1) + Long Call (K2), K1<K2 Butterfly Spread - Buy high and low strike options. Sell middle strike option. Quantity sold = Quantity bought. C(A,B) - Receive A, Give Up B