A combination of purchasing a call and put option with the same exercise price and time to expiry is called:

A) a straddle
B) a written straddle
C) a bought straddle
D) all of the above

Name: A combination of purchasing a call and put option with the same exercise price and time to expiry is called: A) a straddle B) a written straddle C) a bought straddle D) all of the above
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Question

A combination of purchasing a call and put option with the same exercise price and time to expiry is called:

A) a straddle
B) a written straddle
C) a bought straddle
D) all of the above

Quizplus · Accepted Answer

A bought straddle is formed by buying a call option and a put option,both with the same exercise price and time to expiry.

A Combination of Purchasing a Call and Put Option with the Same