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:

Motor Unit

Single neuron and the muscle fibers it innervates.

Cholinesterase

An enzyme that breaks down acetylcholine and other choline esters in the nervous system to terminate synaptic transmission.

Troponin

A protein complex involved in muscle contraction; often measured to diagnose heart attacks.

Sarcolemma

The thin, plasma membrane that surrounds the cytoplasm of muscle cells, critical in muscle contraction.