If You Purchase a Straddle on Euros, This Implies That

question 101

Multiple Choice

If you purchase a straddle on euros, this implies that you:

• A) finance the purchase of a call option by selling a put option in the euros.
• B) finance the purchase of a call option by selling a call option in the euros.
• C) finance the purchase of a put option by selling a put option in the euros.
• D) finance the purchase of a put option by selling a call option in the euros.
• E) None of these are correct.

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Definitions:

Counterconditioning

A behavior therapy technique where a maladaptive response to a stimulus is replaced with a more desirable one.

Paradoxical Intentions

A therapeutic technique where clients are advised to intentionally engage in or exaggerate the behaviors or thoughts they wish to eliminate, leading to awareness and change.

Implosion

A psychological therapy technique where a person is intensely exposed to their fears or traumas in their imagination to reduce the related anxiety.

Reactive Inhibition

A psychological process where a previously learned response decreases in strength or frequency due to the repeated presentation of a stimulus, leading to fatigue or boredom.