SIE practice questionmediumSpreads
A bull call spread is created by:
- ABuying a call at a higher strike and selling a call at a lower strike
- BBuying a call at a lower strike and selling a call at a higher strike✓ Correct answer
- CBuying a put and selling a put at different strikes
- DSelling a call and buying a put at the same strike
Explanation
Why B — Buying a call at a lower strike and selling a call at a higher strike
Bull call spreads are constructed by buying a lower strike call and selling a higher strike call. The other answers mix up spread strategies.
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