An Investor Can Create a Straddle Position by Doing the Following

question 77

Multiple Choice

An investor can create a straddle position by doing the following:

• A)Buy a stock and write a call option
• B)Buy a stock and buy a call option
• C)Buy a stock and buy a put option
• D)Buy a call option and a put option with the same exercise price

---

Definitions:

Continuity

In electrical systems, the unbroken and complete path for current flow, crucial for the safe and effective operation of circuits.

Diode

A semiconductor device that allows current to flow in one direction only, commonly used for rectification or as a check valve in electrical circuits.

Circuit Resistance

The opposition to the flow of electric current within a circuit, measured in ohms, affecting the circuit's performance and power consumption.

DMM

Stands for Digital Multimeter, an electronic measuring instrument that combines several measurement functions in one unit, such as voltage, current, and resistance.