What Is the Purpose of a Long Strangle Option Strategy

question 362

Multiple Choice

What is the purpose of a long strangle option strategy?

• A) To anticipate very low volatility in the price of the underlying commodity
• B) To anticipate moderately high volatility in the price of the underlying commodity
• C) To anticipate moderate volatility in the price of the underlying commodity
• D) To anticipate very high volatility in the price of the underlying commodity

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Definitions:

Partnership

A business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a Partnership Agreement.

Individual

Pertaining to or characteristic of a single, particular person or thing as opposed to a group.

Mining Partner

A member of a partnership formed for the purpose of mining activities, sharing in the profits and liabilities of the venture.

Transferable

Capable of being passed on or conveyed from one person or entity to another.