A straddle can only be achieved if the exercise prices of put and call options are the same.

Name: A straddle can only be achieved if the exercise prices of put and call options are the same.
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Question

Quizplus · Accepted Answer

A straddle occurs when a trader buys a put option and a call option with the same strike price and expiration date. Therefore, the exercise prices of the put and call options must be the same for a straddle to be achieved.

A Straddle Can Only Be Achieved If the Exercise Prices