Which of the following statements currently explains a key characteristic of a bear spread option structure? a.

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Which of the following statements currently explains a key characteristic of a bear spread option structure?

a. The structure is created by a short call with strike price K2 and a long call with strike price K1, where K2 > K1.

b. The maximum profit occurs when the underlying price equals the strike price of the call with the lower strike price.

c. The maximum profit occurs when the underlying price equals the strike price of the call with the higher strike price.

d. Upside profit potential is unlimited.

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Financial Modelling In Commodity Markets

ISBN: 9780367442866

1st Edition

Authors: Viviana Fanelli

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Question Posted: Jun 27, 2024 02:10 AM

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Which of the following statements currently explains a key characteristic of a bear spread option structure? a.

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Financial Modelling In Commodity Markets

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