SIE practice questionmediumStraddles
Buying both a call and a put at the same strike price and expiration is known as a:
- ALong straddle✓ Correct answer
- BCovered call
- CProtective put
- DBull spread
Explanation
Why A — Long straddle
A long straddle involves buying both a call and a put at the same strike/expiration. Covered calls and protective puts only use one option type; spreads involve two calls or two puts.
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