Buying a Put and a Call at the Same Exercise

question 122

Multiple Choice

Buying a put and a call at the same exercise price on the same underlying stock is a _______.

• A) covered call
• B) protective put
• C) spread
• D) straddle
• E) strap

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Definitions:

Fisher's Exact

A test for determining statistical significance in contingency table analysis, specifically designed for small sample sizes.

Nonparametric Tests

Statistical tests that are not based on the assumption that the data follows a particular distribution, used especially for ordinal or nominal data.

Likelihood

Likelihood in statistical analysis is the probability that a particular set of observations would occur given a specific model.

Wilcoxon Rank Test

A nonparametric statistical test that compares two paired groups to determine if their population mean ranks differ.