Chapter 06 · Section 6.1
Bull Spread
To put on a bull spread you:
b) buy the lower strike call and sell the higher strike call.
Yes. The combination of these two options will result in a bought spread. The cost of putting on this position will be the difference between the premium paid for the low strike call and the premium received for the high strike call.Continue
a) sell the lower strike call and buy the higher strike call.