Traders Expecting an Increase in Price Volatility of the Underlying

question 103

True/False

Traders expecting an increase in price volatility of the underlying share will consider a short straddle, while long straddles may be used by those expecting a decrease in volatility.

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Definitions:

Totemism

The belief that people are related to particular animals, plants, or natural objects by virtue of descent from common ancestral spirits.

Dalit Women

Women belonging to the lowest caste in the Indian caste system, historically subject to discrimination and social exclusion.

Lineage Group

A social group or clan within a society that traces descent and inheritance through either the maternal or paternal line.

Kinship Systems

The social relationships that define family through blood, marriage, or adoption, often determining roles, rights, and responsibilities within a community.