A Short Straddle

question 137

Multiple Choice

A short straddle:

• A)consists of a long call and a long put
• B)consists of a long and a short call with same exercise price
• C)will make the greatest profit if the share price at expiry is as close as possible to the exercise price
• D)is a strategy that profits from high volatility.
• E)None of these.

---

Definitions:

Best Available Technology

A term used, especially in environmental regulations, to refer to the most advanced and effective methods and equipment for controlling pollution.

Federal Water Pollution Control Act

A key piece of environmental legislation in the United States aimed at reducing and regulating water pollution.

Clean Water Act

A federal law in the United States aimed at reducing pollution and protecting the quality of the nation's waters, including lakes, rivers, and coastal areas.

Criminal Penalties

Sanctions or punishments imposed by a court following a conviction in a criminal case, which can include fines, imprisonment, or other forms of punishment.