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Attractive features of a Bull Money Spread (BMS) using Call options with exercise prices of X1 and X2; as contrasted with simply buying a call
Attractive features of a Bull Money Spread (BMS) using Call options with exercise prices of X1 and X2; as contrasted with simply buying a call with a strike price of X1, include all of the following, EXCEPT:
A. | The BMS is more profitable for a ver large increase in the stock price. | |
B. | The BMS can be set up for a lower initial cost. | |
C. | The BMS has a lower terminal break even stock price. | |
D. | The BMS will earn a higher profit for a modest upward movement in the stock price. |
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