Put and call options purchased at the same time for the same stock and maturing on the same date cannot both be profitable.

Name: Put and call options purchased at the same time for the same stock and maturing on the same date cannot both be profitable.
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Question

Quizplus · Accepted Answer

Both put and call options can be profitable if the stock price moves significantly in either direction, allowing for a strategy known as a long straddle, where the investor profits from high volatility.

Put and Call Options Purchased at the Same Time for the Same