An investor who holds a strap (2 calls and 1 put)believes the market is more likely to go up than down.

Question

Quizplus · Accepted Answer

A strap is a bullish options strategy that involves buying two call options and one put option at the same strike price and expiration date. This means that the investor stands to profit from a rise in the underlying stock's price while also limiting their potential losses with the purchased put option. Therefore, the investor who holds a strap believes that the market is more likely to go up than down.

An Investor Who Holds a Strap (2 Calls and 1