Which Option Strategy Is Profitable When the Volatility of the Underlying

question 97

Multiple Choice

Which option strategy is profitable when the volatility of the underlying share price is high?

• A)Buy and write
• B)Bull spread
• C)Bear spread
• D)Long straddle
• E)Short straddle

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Cyber Crime

A crime that occurs online, in the virtual community of the Internet, as opposed to the physical world.

Immunity

The legal protection against prosecution or liability, often granted to individuals to encourage them to provide evidence or testimony without fear of repercussions.

Encryption

The process of converting information or data into a code, especially to prevent unauthorized access, ensuring data privacy and security.

Felony

A serious crime, typically one punishable by imprisonment for more than one year or by death.