Products & RisksCâu 36 / 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
Giải thích
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.
Luyện miễn phí toàn bộ 125 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- An investor who is bullish on a stock but wants to limit the cost of the position could establish a:
- An investor buys 1 XYZ 50 call for 5 and sells 1 XYZ 60 call for 2. What is the maximum gain on this spread?
- Using the same spread (buy 1 XYZ 50 call for 5, sell 1 XYZ 60 call for 2), what is the maximum loss?
- An investor buys 1 XYZ 50 call for 4 and 1 XYZ 50 put for 3 (a long straddle). What are the two breakeven points?
- An investor owns 100 shares of XYZ and sells 1 XYZ call against the position. This strategy is known as:
- An investor who owns 100 shares of a stock and is worried about a near-term decline could best protect the position by:
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