Products & RisksPregunta 36 de 125
A long straddle consists of:
a.Buying a call and selling a put with the same strike
b.Selling both a call and a put with the same strike
c.Buying two calls at different strikes
d.Buying a call and buying a put with the same strike and expiration
Explicación
A long straddle is the purchase of both a call and a put on the same underlying with identical strike and expiration. The buyer profits from a large price move in either direction and is said to be buying volatility; the maximum loss is the total premium paid.
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