A Straddle Is the Simultaneous Purchase (Or Sale) of a Put

question 134

Multiple Choice

A straddle is the simultaneous purchase (or sale) of a put and call option with the same underlying asset,

• A) Same exercise price, and expiration date.
• B) Same exercise price but different expiration date.
• C) Same expiration date but different exercise price.
• D) All of the above.
• E) None of the above.

---

Definitions:

Unoccupied Land

Land that is not claimed, settled, or currently used by any nation or individual, often the focus of exploration or expansion by countries.

Erie Canal

Most important and profitable of the canals of the 1820s and 1830s; stretched from Buffalo to Albany, New York, connecting the Great Lakes to the East Coast and making New York City the nation’s largest port.

Great Lakes

A group of five large, interconnected freshwater lakes located on the border between the United States and Canada, significant for their combined area, volume, and role in North American commerce and navigation.

Facilitated

To facilitate means to make an action or process easier or to assist in the progress of something, often by providing necessary resources, information, or support.