bull put spread

bull put spread
The purchase of a put with a low strike price against the sale of a call with a higher strike price; prices are expected to rise. The maximum potential profit equals the net premium received. The maximum loss is calculated as follows: (high strike price - low strike price) - net premium received where net premium received = premiums paid - premiums received. The CENTER ONLINE Futures Glossary

Financial and business terms. 2012.

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