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Suppose that you are going to employ the bear spread strategy. How is this strategy performed? Note that K1 and K2 represent the strike prices.

Suppose that you are going to employ the bear spread strategy. How is this strategy performed? Note that K1 and K2 represent the strike prices.

Long call with K1 and Long call with K2 where K1 < K2

Long call with K1 and Short put with K2 where K1 < K2

Short call with K1 and Long call with K2 where K1 < K2

Short call with K1 and Short put with K2 where K1 < K2

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