Which of the Following Would Be Referred to as a Straddle

question 46

Multiple Choice

Which of the following would be referred to as a straddle?

• A)selling a call and selling a put on the same stock
• B)buying a call and shorting a put on the same stock
• C)selling a call and buying a put on the same stock
• D)none of the above

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Definitions:

Depreciation Expense

The allocation of an asset's cost over its useful life, reflecting the asset's consumption, wear, and tear.

Dividends Paid

The total amount of earnings distributed by a company to its shareholders as a reward for their investment.

Inventory Increase

This occurs when there is a rise in the quantity or value of goods held by a company, signaling a buildup of stock.

Amortization of Patents

The systematic reduction of the financial value of a patent over its useful life, reflecting its consumption and obsolescence.