An investor sells a june 2008 call of abc limited with a

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An investor sells a June 2008 call of ABC Limited with a strike price of USD 45 for USD 3 and buys a June 2008 call of ABC Limited with a strike price of USD 40 for USD 5. What is the name of this strategy and the maximum profit and loss the investor could incur?

A. Bear spread, maximum loss USD 2, maximum profit USD 3

B. Bull spread, maximum loss Unlimited, maximum profit USD 3

C. Bear spread, maximum loss USD 2, maximum profit unlimited

D. Bull spread, maximum loss USD 2, maximum profit USD 3

Reference no: EM13568839

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