SIE practice questionmediumStraddles
A long straddle consists of which positions?
- ABuying a call and a put with the same strike and expiration✓ Correct answer
- BBuying two calls at different strikes
- CSelling a call and buying a put at the same strike
- DBuying a call and a put with different expirations
Explanation
Why A — Buying a call and a put with the same strike and expiration
A long straddle buys both call and put at the same strike/expiration. Different strikes or expirations are not straddles.
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