Which of the following strategies makes a profit if the stock price stays stable?
A) Long call and short put
B) Long call and long put
C) Short call and short put
D) Short call and long put

Question

Quizplus · Accepted Answer

A short call and short put strategy, known as a short straddle, profits when the stock price remains stable, as both options expire worthless, allowing the trader to keep the premiums received.

Which of the Following Strategies Makes a Profit If the Stock