Which of the following creates a bull spread? A. Buy a low strike price call and sell a high strike price call B. Buy a high str

Question

3 years ago

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Which of the following creates a bull spread? A. Buy a low strike price call and sell a high strike price call B. Buy a high str

ike price call and sell a low strike price call C. Buy a low strike price call and sell a high strike price put D. Buy a low strike price put and sell a high strike price call

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1 answer:

Alex17521 [72] · Answer 1 · 2022-03-27T07:45:36+03:00

Answer:

A. Buy a low strike price call and sell a high strike price call

Explanation:

Bull spread is an optimistic, vertical spread options master plan that is designed to profit from an average rise in the price of the basic security and thus, the above-mentioned scenario creates a bull spread.