Question: 1- Which creates a STRANGLE? A-Buy two $55 puts, buy one $55 call B-Buy one $55 put, buy one $65 put and sell two $60

1- Which creates a STRANGLE?

A-Buy two $55 puts, buy one $55 call

B-Buy one $55 put, buy one $65 put and sell two $60 puts

Buy one $55 put, buy one $65 call

C-Sell two $55 puts, buy one $60 put and buy one $65 put.

D-Sell one $55 put, buy one $60 call

6- Which of the following can be used to create a short position in a European call option on a stock?

A-Sell the stock and buy a put option (with borrowing).

B-Buy the stock and buy a put option (with borrowing).

C-Buy the stock and sell a put option (with lending).

D-Sell the stock and sell a put option (with lending).

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!