A Long Straddle Is a Strategy That Combines

question 99

Multiple Choice

A long straddle is a strategy that combines:

• A)a long call with a higher strike price and a long put with a lower strike price
• B)a short call with a lower strike price and a long call with a higher strike price
• C)a short call and a short put at the same strike price and expiry
• D)a long call and a long put at the same strike price and expiry.
• E)None of these.

---

Definitions:

Intercept

The value of the dependent variable when all independent variables are zero in a regression model.

Y-Intercept

The point where a line crosses the y-axis of a graph, representing the value of y when x equals zero.

Linear Regression Equation

The linear regression equation is a mathematical formula used to describe the relationship between a dependent variable and one or more independent variables.

Pearson r

A statistic representing the degree of linear correlation between two variables, ranging from -1 to 1.