This flashcard is just one of a free flashcard set. See all flashcards!
183
3.Which of the following creates a bull spread?
A.Buy a low strike price put and sell a high strike price put
B.Buy a high strike price put and sell a low strike price put
C.Buy a high strike price call and sell a low strike price put
D.Buy a high strike price put and sell a low strike price call
A.Buy a low strike price put and sell a high strike price put
B.Buy a high strike price put and sell a low strike price put
C.Buy a high strike price call and sell a low strike price put
D.Buy a high strike price put and sell a low strike price call
Answer: A
A bull spread is created by buying a low strike call and selling a high strike call. Alternatively, it can be created by buying a low strike put and selling a high strike put.
A bull spread is created by buying a low strike call and selling a high strike call. Alternatively, it can be created by buying a low strike put and selling a high strike put.
Flashcard info:
Author: CoboCards-User
Main topic: Finance & Investment
Topic: Derivatives
Published: 27.10.2015