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:

Worker's Output

The quantity of goods or services produced by an employee within a certain period of time.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders, and is authorized to act as a single entity, legally endowed with rights and responsibilities.

Accounting Profit

The total revenue of a firm minus the explicit costs directly tied to those revenues.

Economic Profit

The difference between total revenues and total costs, including both explicit and implicit costs.