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:

Self-verification

The process through which people seek to confirm and maintain their self-concept by soliciting feedback that aligns with their own views of themselves.

Honing an Image

The process of deliberately crafting and maintaining a desired public or self-image.

Dramaturgical Model

A perspective in sociology that describes social interactions as if they were part of a theatrical performance, with individuals acting out roles in front of an audience.

Role Play

A method of learning or training by acting out roles, typically to practice specific skills, understand different perspectives, or explore hypothetical scenarios.