You Form a Long Option Straddle (A Combination of a Long

question 26

Multiple Choice

You form a long option straddle (a combination of a long call and a long put with the same exercise price) on the Mexican peso. Which of a) through c) results in a profit on your position?

• A) a large decrease in the value of the Mexican peso
• B) a large increase in the value of the Mexican peso
• C) no change in the value of the Mexican peso
• D) More than one of the above
• E) None of the above

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Definitions:

Sink

A basin used for washing and typically connected to a water supply and drainage system.

Xylem

The tissue in plants that transports water and some nutrients from the roots to the leaves.

Bundle Scars

Marks left on the stem of a plant where vascular bundles or leaf traces have broken off or been removed.

Leaf Scar

Marks on a stem left when the petiole of a leaf breaks during abscission.