An Option Strategy in Which You Hold a Long Position

question 43

Multiple Choice

An option strategy in which you hold a long position in both a put and a call option with the same strike price is called:

• A)a strangle.
• B)portfolio insurance.
• C)a butterfly spread.
• D)a straddle.

Grasp the role and impact of government regulation in achieving environmental objectives through emissions permits and taxes.

Recognize the challenges in setting up and implementing tradable emissions permits and emissions taxes.

Understand external benefits in the context of environmental economics and the impact on market outcomes without regulation.

Understand the concept of externalities and how they impact social welfare.