A Combination of Purchasing a Call and Put Option with the Same

question 12

Multiple Choice

A combination of purchasing a call and put option with the same exercise price and time to expiry is called:

• A) a straddle
• B) a written straddle
• C) a bought straddle
• D) all of the above

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Definitions:

Charles Darwin

A 19th-century naturalist and geologist, best known for his contributions to the science of evolution, particularly the theory of natural selection.

Cognitive Neuroscience

The scientific field that studies the biological processes and aspects that underlie cognition, with a specific focus on the neural connections in the brain which are involved in mental processes.

Psychology

The scientific study of the mind and behavior, including both the conscious and unconscious phenomena, as well as thought processes in humans and animals.

Philosophy

The examination of the essential characteristics of knowledge, reality, and being, particularly in the context of an academic field.