Which of the following statements currently explains a key characteristic of a bear spread option structure? a.
Question:
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.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answered By
Joseph Mwaura
I have been teaching college students in various subjects for 9 years now. Besides, I have been tutoring online with several tutoring companies from 2010 to date. The 9 years of experience as a tutor has enabled me to develop multiple tutoring skills and see thousands of students excel in their education and in life after school which gives me much pleasure. I have assisted students in essay writing and in doing academic research and this has helped me be well versed with the various writing styles such as APA, MLA, Chicago/ Turabian, Harvard. I am always ready to handle work at any hour and in any way as students specify. In my tutoring journey, excellence has always been my guiding standard.
1+ Reviews
10+ Question Solved
Related Book For 
Question Posted:
