An investor establishes a bear put spread by:

1. ABuying a higher strike put and selling a lower strike put✓ Correct answer
2. BBuying a lower strike call and selling a higher strike call
3. CBuying a lower strike put and selling a higher strike put
4. DBuying and selling calls at the same strike price

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• Which factor does NOT directly affect the premium of an equity option?
• Which Greek measures the rate of change in an option’s price for a $1 move in the underlying stock?
• A customer who is long an American-style equity call option may exercise:
• When an option writer is assigned, they must: