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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Definitions:

Physical Decline

The gradual loss of physical capabilities and functions that occurs as part of the aging process.

Social Need

A requirement for belonging and acceptance within a group or society, influencing human behavior and motivation.

Survival

The act of continuing to live or exist, especially under challenging conditions.

Security

The protection of data, systems, and networks from theft, damage, and unauthorized access.