Chapter 07 · Section 7.1

Bear Spread Question 2

To put on a bear spread you:

• a) sell the lower strike call and buy the higher strike call.
  No.
  b) buy the lower strike call andsell the higher strike call.
  c) sell the higher strike put and buy the lower strike put.
  d) buy the higher strike put and sell the lower strike put.
  e) a and c.
  f) d and a.