A Straddle

By Investopedia Staff AAA
A:

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

B
. S
peculates 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.



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