Which of the following is a credit spread? (A) long 1 ABC Dec 60 call/short 1 ABC Dec 70 call (B)…

Which of the following is a credit spread? (A) long 1 ABC Dec 60 call/short 1 ABC Dec 70 call (B) long 1 DEF Nov 70 put/short 1 GHI Nov 55 put (C) long 1 JKL Sep 40 call/short 1 JKL Sep 30 call (D) long 1 MNO May 30 put/short 1 MNO May 20 put An investor with no other positions shorts an XYZ Dec 35 straddle while XYZ is trading at 35. This investor is looking for XYZ to (A) increase in value (B) decrease in value (C) remain stable (D) either Choice (A) or (B)

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