Chapter 06 · Section 6.1

Spread Requirements

What is necessary to create a spread?

a) to buy a put and to buy a call.
• b) the sale and the purchase of an option of the same type with different exercise prices and/or expiration dates.
  Yes. A spread is an option position "spreading" out two option positions of the same type. This spreading out can be done by using different exercise prices or expiration dates. Continue
  c) to sell a call and to buy a put.

(Click here for help)