The FTSE Index Is at 5,100

question 24

Multiple Choice

The FTSE index is at 5,100. You are short a straddle on the FTSE 100 struck at 5,100 and long a 5,000/5,200 strangle. If volatility were to increase,

• A) The value of your position would increase.
• B) The value of your position would be unaffected.
• C) The value of your position would decrease.
• D) Any of the above is possible.

---

Definitions:

Ova Cells

Female reproductive cells or egg cells that, when fertilized by male sperm cells, can develop into an embryo.

Sperm Cells

Male reproductive cells designed to fertilize female eggs, containing genetic material for offspring.

Cumulative Cultural Evolution

The process by which cultures accumulate changes over time, leading to the development and refinement of knowledge, technology, and social norms.

Mutated Gene

A gene that has undergone a change in its DNA sequence, which can affect the gene's function.