Bull spread

ankuragrawal.nit
Finance Junkie
Posts: 64
Joined: Sun Apr 01, 2012 10:52 am

Bull spread

Postby ankuragrawal.nit » Sat Feb 25, 2012 1:53 am

Unlike the bull spread created from calls the bull spread created from puts involve a positive upfront cash flow to the investor (ignoring margin requirement)
Can you explain via an example? I am unable to understand why a put strategy will require upfront cash flow whereas call won't.

ankuragrawal.nit
Finance Junkie
Posts: 64
Joined: Sun Apr 01, 2012 10:52 am

Re: Bull spread

Postby ankuragrawal.nit » Sun Feb 26, 2012 4:45 am

Thanks Shreyas, I missed out on the fact that you "get" that money :)


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