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13.How can a strap trading strategy be created?
A.Buy one call and one put with the same strike price and same expiration date
B.Buy one call and one put with different strike prices and same expiration date
C.Buy one call and two puts with the same strike price and expiration date
D.Buy two calls and one put with the same strike price and expiration date
A.Buy one call and one put with the same strike price and same expiration date
B.Buy one call and one put with different strike prices and same expiration date
C.Buy one call and two puts with the same strike price and expiration date
D.Buy two calls and one put with the same strike price and expiration date
Answer: D
A strap consists of two calls and one put with the same strike price and time to maturity.
A strap consists of two calls and one put with the same strike price and time to maturity.
Flashcard info:
Author: CoboCards-User
Main topic: Finance & Investment
Topic: Derivatives
Published: 27.10.2015