A Short Straddle

question 109

Multiple Choice

A short straddle

• A) Involves exercising two or more options simultaneously.
• B) Increases downside risk.
• C) Allows you to profit if a stock price remains constant.
• D) Requires a bull market if you are to profit.
• E) Involves selling shares you are currently own.

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Definitions:

Tradeoffs

The balancing act of giving up one thing to gain another, often used in discussions about decision-making processes.

Decisions

Choices made from among alternatives based on judgement or information.

Rent

A payment made by a tenant at regular intervals in exchange for the use of land, a building, an apartment, an office, or other property.

Neighborhood Quality

The overall assessment of an area based on factors like safety, cleanliness, community services, and the physical environment.