How Can a Straddle Be Created

question 4

Multiple Choice

How can a straddle be created?

• A) Buy one call and one put with the same strike price and same expiration date
• B) Buy one call and one put with different strike prices and same expiration date
• C) Buy one call and two puts with the same strike price and expiration date
• D) Buy two calls and one put with the same strike price and expiration date

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Definitions:

Central Bank

Is the primary financial institution of a country, responsible for issuing currency, managing the money supply, regulating banks, and implementing monetary policy to achieve economic stability.

Foreign Exchange Rate

The price at which one currency can be exchanged for another currency in the foreign exchange market.

World Market

The global marketplace where goods, services, and financial products are bought and sold across borders.

Trade Balance

The difference between a country's exports and imports of goods and services over a certain period.