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.
• c) to sell a call and to buy a put.
  No. Both positions are on the same "side" of the market, i.e. they both profit from decreasing prices of underlying. Actually, this position is similiar to the sale of the underlying.

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