n NISM Certifications
XIII NISM Series XIII
Medium

Identify the TRUE statement with respect to Option Spreads.

Practice question from NISM Series XIII for SIF - Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    A bullish call spread will result in an initial cash inflow for the trader

  2. A bearish call spread will result in an initial cash inflow for the trader

    Correct answer

  3. C

    A bullish put spread will result in an initial cash outflow for the trader

  4. D

    A bearish put spread will result in an initial cash inflow for the trader

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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