alleryStart learning →Which strategy sells both a put and a call at the same exercise price?
AButterfly
BCovered call
CStrangle
DShort straddle
Answer & Solution
Correct answer: D. Short straddle
Selling a call and a put with one common strike is called selling a straddle.
Keep practising Option (Finance)
Browse all Option (Finance) questions for CA Final, or explore more Strategicfinancialmanagement topics.
Related questions
When is charm especially useful for a delta-hedger?Which Greek is most important for an at-the-money straddle?Speed measures the change in gamma with respect to what?Which Greek is also known as vega convexity?Which Greek is called delta decay?Gamma is classed as which kind of Greek?Which Greek measures sensitivity to the interest rate?Which Greek measures the time decay of an option?