Series 7 - General Securities Representative Exam
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Which of the following is an example of buying a vertical call spread?
Buy 30 call, sell 40 call
A
Sell 40 call, buy 50 call
B
Sell 40 put, buy 50 call
C
Buy 50 call, sell 50 put
D
Explanations
buying a call spread (vertical call spread / call debit spread) is buying a call and selling a higher strike price call