Box spreads are used to guarantee a fixed cash flow in the future. Thus, they are purely a means of borrowing or lending money, and have no stock price risk.

Consider a box spread based on two distinct strike prices (K, L) that is used to lend money, so that there is a positive cost to this transaction up front, but a guaranteed positive payoff at expiration.

Determine which of the following sets of transactions is equivalent to this type of box spread.

(A) A long position in a (K, L) bull spread using calls and a long position in a (K, L) bear spread using puts.

(B) A long position in a (K, L) bull spread using calls and a short position in a (K, L) bear spread using puts.

(C) A long position in a (K, L) bull spread using calls and a long position in a (K, L) bull spread using puts.

(D) A short position in a (K, L) bull spread using calls and a short position in a (K, L) bear spread using puts.

(E) A short position in a (K, L) bull spread using calls and a short position in a (K, L) bull spread using puts.