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How to create a bull spread？
A.Buy a put with a strike price of X=55,and sell a put with a strike price of 50.
B.Buy a put with a strike price of X=50,and sell a put with a strike price of 55.
C.Buy a call with a premium of 5,and sell a call with a premium of 7
D.Buy a call with a strike price of X=50,and sell a put with a strike price of 55.
Answer:B
A bull spread involves buying a put with a low strike price and selling another put with a high strike price or buying a call with a low strike price and selling another call with a high strike price.
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