A bull call spread is created by:

1. ABuying a call at a higher strike and selling a call at a lower strike
2. BBuying a call at a lower strike and selling a call at a higher strike✓ Correct answer
3. CBuying a put and selling a put at different strikes
4. DSelling a call and buying a put at the same strike

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• Which statement describes a bear put spread?
• Buying both a call and a put at the same strike price and expiration is known as a:
• Which two factors primarily impact the premium of an option?
• If a call option is out of the money at expiration, what happens?