A Straddle Is a Combination of a Put and Call

question 1

Multiple Choice

A straddle is a combination of a put and call on:

• A)The same stock with the same strike price and expiration date
• B)Different stocks with the same strike price and expiration date
• C)Different stocks with different strike price and expirations dates
• D)The same stock with same the strike price and different expiration dates

---

Definitions:

Life Threatening Disease

A severe health condition that has a high probability of causing death.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of the good supplied.

Opportunity Cost

The relinquishment of possible gains that could have been obtained from alternatives when one is selected.

Production Increases

This term describes a situation where the total output of goods and services in an economy grows over a specified period.