Question: Straddles have been described as volatility plays Explain what this

Straddles have been described as “volatility plays.” Explain what this means for both long and short straddle positions. Given the fact that volatility is a primary factor in how options are priced, under what conditions might an investor who believes that markets are efficient ever want to create a straddle?


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  • CreatedDecember 17, 2014
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