Question

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 strike 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

Answer 1

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

Step-by-step 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.