An Option Trader Will Acquire a Long Straddle If the Trader

question 101

True/False

An option trader will acquire a long straddle if the trader expects a share price to become much more volatile than the market expects.

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Definitions:

Starvation

A condition resulting from a severe deficiency in caloric energy, nutrient, and vitamin intake, leading to death if not addressed.

Bourgeoisie

The social class that came to own the means of production during modern industrialization, typically referring to wealthier members of society or the middle class.

Middle Class

A socioeconomic group situated between the working class and the upper class, typically composed of professionals, business owners, and white-collar workers.

Peasant

A farmer of low social status who owns or rents a small piece of land for cultivation, historically part of rural and agrarian societies.