Suppose we have the following information for the index $S$:
current price = $ \$1000$ risk free rate $4 \%$ convertible semiannualy
What is the net premium to create a $ \$ 1000- \$ 1050$ bull spread using call options?
So I want to buy the $ \$1000$ call option and sell the $ \$ 1050$ call option. The price of a 6-month $ \$ 1000$ call is $93.809$. The price of a 6-month $ \$ 1050$ call is $71.802$.
So why is the net premium $93.809 - 71.802$? If I am buying (selling) something shouldn't I be losing (making) money? Hence it should be $-93.809 + 71.802$?