Buying a Bear Spread Is Equivalent to

Multiple Choice

Buying a bear spread is equivalent to

A) Selling a bull spread.
B) Buying an out-of-the-money call and selling an in-the-money call on the same stock with the same exercise date.
C) Selling an out-of-the-money call and buying an in-the-money call on the same stock with a different exercise price.
D) Choices a and b only.
E) None of the above