A long strangle is similar to a long straddle except that:
A) a strangle is more risky
B) a strangle is more expensive
C) a strangle is cheaper
D) a straddle is more risky

Name: A long strangle is similar to a long straddle except that: A) a strangle is more risky B) a strangle is more expensive C) a strangle is cheaper D) a straddle is more risky
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Question

Quizplus · Accepted Answer

A long strangle involves buying out-of-the-money call and put options, which makes it cheaper than a long straddle, where at-the-money options are bought.

A Long Strangle Is Similar to a Long Straddle Except