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.

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Definitions:

Absolute Refractory Period

A time period during which a neuron cannot fire another action potential, no matter how strong the stimulus.

Inactivation Gates

Structures within ion channels of neuron cell membranes that close to stop ion flow, contributing to the regulation of action potentials and neuronal firing.

Voltage-Gated Channels

Protein channels in cell membranes that open or close in response to changes in electrical membrane potential, crucial for action potentials.

Synaptic Transmission

The process by which neurotransmitters are released by one neuron and bind to receptors on another neuron, facilitating communication between neurons.