Series 7 - General Securities Representative Exam
Which of the following trades indicates that an investor is bearish on ABC stock?
Long 40 put short 30 putA
Short 50 putB
Long 45 call short 55 callC
Short 40 put long 30 putD
A is a bear debit (vertical spread). it is bearish. B is bullish, C is bullish, D is neutral to bullish (sold credit vertical spread)