Which One of the Following Is a Bear Call Spread

question 29

Multiple Choice

Which one of the following is a bear call spread?

• A)buying a $20 call and selling a $25 call on the same stock
• B)selling a $20 call and buying a $20 call on the same stock
• C)buying a $20 call and selling a $15 call on the same stock
• D)selling a $20 call and buying a $25 put
• E)buying a $20 call and selling a $25 put

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Definitions:

Square Wave Voltage

A voltage signal which alternates between a high and a low level in a square-shaped waveform, typically representing binary data.

Positive Pulses

Short bursts of electrical energy that have a higher voltage level than the ground or reference point, often used in digital and electronic signaling.

Compound Motor

A type of DC motor that combines both series and shunt winding to offer high starting torque and good speed regulation.

Series and Shunt

Terms used to describe configurations in electrical circuits; "series" refers to components connected end-to-end, while "shunt" refers to components connected parallel to each other.