An investor has written a covered call.

Determine which of the following represents the investor's position.

Possible Answers

A:Short the call and short the stock

B:Short the call and long the stock

C:Short the call and no position on the stock

D:Long the call and short the stock

E:Long the call and long the stock

Also, In your own words, briefly explain what the key difference is between the payoff diagrams of the two different versions of the bull spread (put version and call version). What affect does this difference have on the net premiums of these two strategies?