Delta of a bull call spread

CFA Level III
#1

If you are given delta of the two calls used in a bull call spread, how do you calculate the combined delta of the strategy. Is it (a) delta of long position - delta of short position (b) delta of long position + delta of short position - BN

#2

I pick D

#3

A

#4

^^^ agree

#5

was it close to 1 on the mock? that is what I said.

#6

just draw the payoff charts you will see that as u move along the x axis one delta goes up other goes down u also see that one delta (slope) is + one is - correct? so u can figure out the rest… u cant possibly know everything, there may be millions of combinations of these questions but you can think and find out the answer based on fundamental knowledge

#7

The way I saw it, the long call had a delta close to 1. The short call had a delta close to 0. Add them together and you get something near 1.

#8

Yes it was 1 on the test.