A Short Straddle

question 84

Multiple Choice

A short straddle:

• A)involves exercising two or more options simultaneously.
• B)is the purchase of both a put and a call on the same underlying asset.
• C)obtains its maximum profit when the underlying stock price is equal to the strike price.
• D)involves writing a call on shares of stock you currently own.
• E)is a highly bullish strategy.

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Definitions:

Multiple Intelligences

A theory that suggests human intelligence is comprised of various distinct faculties beyond just linguistic and mathematical skills, including musical, spatial, bodily-kinesthetic, interpersonal, intrapersonal, and naturalistic intelligences.

Howard Gardner

An American developmental psychologist best known for his theory of multiple intelligences, which suggests that intelligence is not a single general ability but a combination of several specific abilities.

Triarchic Theory

A theory of intelligence proposed by Robert Sternberg, suggesting intelligence comprises analytical, creative, and practical dimensions.

Robert Sternberg

An American psychologist best known for his theory on intelligence and creativity, including the triangular theory of love.