An Option Strategy That Involves Buying a Put and Call

question 25

Multiple Choice

An option strategy that involves buying a put and call with the same strike price is known as a:

• A) strangle.
• B) collar.
• C) straddle.
• D) butterfly.

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Definitions:

Exchange Rate

The value of one currency for the purpose of conversion to another, impacting trade and economics globally.

Transactions

The action of conducting business or trading between parties, typically involving the exchange of goods, services, money, or information.

International Exchange

The trading of goods, services, and currencies among countries.

Current Account

A country's balance of payments segment that encompasses the trade balance, net foreign income, and net current transfers.