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5 Cards in this Set

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  • Back

Credit spreads


Max gain:______


Max loss:_______

The net credit


Stk price-net credit

Debit spreads


Max gain:


Max loss:

Gain : Stk price - net debit


Loss: net debit

Call Spreads



Lower Stk price has a _____ premium. If you buy the lower Stk price then it is a _______spread.


Selling the lower Stk price is a _____ spread



Higher


Debit


Credit