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

Question

Quizplus · Accepted Answer

Selling a bull spread is equivalent to buying a bear spread because both strategies anticipate a decline in the underlying asset's price.

What Is Equivalent to Buying a Bear Spread