You Are Convinced That a Stock's Price Will Move by at Least

question 38

Multiple Choice

You are convinced that a stock's price will move by at least 15% over the next three months.You are not sure which way the price will move,but you believe that the results of a patent hearing are definitely going to have a major effect on the stock price.You are somewhat more bullish than bearish however.Which one of the following options strategies best fits this scenario?

• A) Buy a strip
• B) Buy a strap
• C) Buy a straddle
• D) Write a straddle

---

Definitions:

Ethnomethodological

A perspective focusing on the ways individuals use everyday conversation and gestures to construct a shared sense of order and reality.

Conversational Analysis

A methodological approach in sociology that studies the ways in which conversation and interpersonal communication are structured and have meaning.

Nonverbally

Pertaining to communication or the conveyance of ideas and feelings without the use of spoken words, such as through body language, gestures, and facial expressions.

Accounting

The systematic recording, reporting, and analysis of financial transactions of a business or individual.