Chapter 06 · Section 6.1

Spread Requirements

What is necessary to create a spread?

• a) to buy a put and to buy a call.
  No. The characteristic of this strategy is an unlimited profit potential since he value of a call and the value of a put increase according to contradictory market movements.
  b) the sale and the purchase of an option of the same type with different exercise prices and/or expiration dates.
  c) to sell a call and to buy a put.

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