Which One of the Following Is a Bear Call Spread

question 12

Multiple Choice

Which one of the following is a bear call spread?

• A)buying a $30 call and selling a $35 call on the same stock
• B)selling a $30 call and buying a $30 call on the same stock
• C)buying a $30 call and selling a $25 call on the same stock
• D)selling a $30 call and buying a $35 put
• E)buying a $30 call and selling a $35 put

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Definitions:

Promissory Estoppel

A legal principle that prevents a party from going back on a promise, even if it was not formally agreed to in a contract, if someone else has relied on that promise to their detriment.

Tort of Deceit

A legal cause of action that arises when one party intentionally lies or misrepresents a material fact with the intent to deceive another, causing harm.

Guarantor

An individual or entity that agrees to be responsible for another's debt or performance under a contract, should the primary party fail to meet its obligations.

Principal Debtor

The main individual or entity responsible for repaying a debt or obligation.