Which of the Following Creates a Bear Spread

question 2

Multiple Choice

Which of the following creates a bear spread?

• A) Buy a low strike price put and sell a high strike price put
• B) Buy a high strike price put and sell a low strike price put
• C) Buy a high strike price call and sell a low strike price put
• D) Buy a high strike price put and sell a low strike price call

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Definitions:

Adjusting Process

The procedure of making entries to update financial accounts before the preparation of financial statements, to ensure their accuracy and adherence to the accrual basis of accounting.

Adjusted Trial Balance

A list of all accounts and their balances after adjustments have been made for the end of an accounting period.

Account Balances

The amounts of money in a company's financial accounts at a specific point in time.