What Is Equivalent to Buying a Bear Spread

question 53

Multiple Choice

What is equivalent to buying a bear spread?

• A) Selling a bull spread.
• B) Buying an out-of-the-money call and selling an in-the-money call on the same stock with the same exercise date.
• C) Selling an out-of-the-money call and buying an in-the-money call on the same stock with a different exercise price.
• D) Choices a and b
• E) None of the above

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Definitions:

Adjusted Cash Balance

A financial statement figure that reflects the actual amount of cash available, adjusted for items like outstanding checks or deposits in transit.

Check Register

A record, usually part of a checkbook, that allows individuals or businesses to track their deposits and withdrawals.

Service Charge

A fee collected for services provided, which may relate to banking, hospitality, or utilities.

Bank Statement

A monthly summary provided by a bank, detailing all transactions in a customer's account.