An Option Straddle Is the Simultaneous Purchase (Or Sale) of Both

question 39

True/False

An option straddle is the simultaneous purchase (or sale) of both a put and a call option on the same underlying security.

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Definitions:

Electrophile

A reactive species that seeks out electrons, often forming a bond by accepting an electron pair from a nucleophile.

Nucleophile

A chemical species that donates an electron pair to an electrophile to form a chemical bond.

Curved Arrow Formalism

A notation technique in chemistry representing the movement of electrons during reaction mechanisms.

Electron Pairs

Pairs of electrons occupying the same orbital but having opposite spins; important in bond formation and molecular structure.