Examlex
A strip (2 puts and one call)would cost more than a straddle but would pay off more if the stock falls.
Delta
The number of stocks required to hedge against the price risk of writing one option. Also called the hedge ratio.
Underlying Asset
An asset upon which a derivative's price is based, ranging from commodities and currencies to stocks and bonds.
Call Price
The price at which a callable bond can be redeemed by the issuer before its maturity date, typically higher than the face value.
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