A Long Straddle

question 80

Multiple Choice

A long straddle

• A) consists of selling and writing an equal number of puts and calls with different strike prices but the same expiration date and the same underlying security.
• B) is a strategy based on the expectation that the price of the underlying security will be relatively constant.
• C) consists of buying a call at one strike price and then writing a call at a higher strike price.
• D) is a strategy that produces profits when the price of the underlying security moves significantly in either direction.

---

Definitions:

Common Form

A general or widespread type or style, often referring to documents or artworks that adhere to standard or customary formats and presentations.

Malleus

A small bone in the middle ear that plays a key role in the process of hearing by transmitting sound vibrations from the eardrum to the inner ear.

Incus

A small anvil-shaped bone in the middle ear that plays a crucial role in transmitting sound vibrations to the inner ear.

Red-green Color Blindness

A common type of color vision deficiency where individuals have difficulty distinguishing between red and green hues.