You Have a Portfolio with Long Positions in Both Puts

question 22

Multiple Choice

You have a portfolio with long positions in both puts and calls. The volatility in the market rises.

• A) Your portfolio gains in value.
• B) Your portfolio gains on the calls and loses on the puts.
• C) Your portfolio gains on the puts and loses on the calls.
• D) Your portfolio is now more risky and is therefore worth less than before.

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