Which one of the following is a bull call spread?
A)buying a $30 call and selling a $35 call on the same stock
B)selling a $30 call and buying a $35 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

Question

Quizplus · Accepted Answer

A bull call spread involves buying a call at a lower strike price and selling a call at a higher strike price on the same stock, with both options expiring at the same time. This limits the potential profit but also limits the potential loss. Option A fits this description, as it involves buying a $30 call and selling a $35 call on the same stock.

Which One of the Following Is a Bull Call Spread