Frequently Asked Question

July 28 2009 | Filed Under » ,

A Straddle

A. Speculates on the rate of change of a security’s market price.

B. Speculates on the rate of change of an option’s market price.

C. Speculates on the volatility of a security’s market price.

D. Consists of a put and a call having different exercise prices or expiration dates


Correct Answer: C

“A” is a guess; “B” is a calendar spread; “D” is a combination.
by

Investopedia Staff

Investopedia Staff
Investopedia.com believes that individuals can excel at managing their financial affairs. As such, we strive to provide free educational content and tools to empower individual investors, including thousands of original and objective articles and tutorials on a wide variety of financial topics.
Sponsored Links
Last Questions Asked:
Partner Links