CFA CFA Level 3 Could a bull spread have zero initial cost?

Could a bull spread have zero initial cost?

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    • Avatar of stpecurrystpecurry
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        Could a bull spread have zero initial cost? Why or why not?

        Thanks

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        You have same premium cost for options with the same delta. Two call/put options with different strike price can never have the same delta. Only a combination of a put and call or two calls/put with the same strike price will have the same initial cost.

      • Avatar of mattycmattyc
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          No becuase you are buying and selling options with different strike prices.  In a bull call spread you’d be buying a call with a lower strike and selling a call with a higher strike so you would have a net expense.  A bull put spread you sell a put with a higher strike and buy a put with a lower strike so you have a net income.

        • Avatar of MatildaMatilda
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            No.

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