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.

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Definitions:

Davis Strait

A body of water located between Greenland and Canada, serving as a significant shipping route and habitat for marine wildlife.

Leif Ericsson

A Norse explorer believed to be the first European to land in North America, approximately 500 years before Christopher Columbus.

Initial Contact

Refers to the first encounters between European explorers and indigenous peoples of the Americas, marking the beginning of significant cultural, social, and environmental changes.

Amerigo Vespucci

An Italian explorer for whom the Americas are named, recognized for demonstrating that Brazil and the West Indies did not represent Asia's eastern outskirts as initially conjectured by Columbus.