A combination trade in which an investor purchases a put and a call on the same stock, both carrying the same exercise price and maturing on the same date, is known as a:

Name: A combination trade in which an investor purchases a put and a call on the same stock, both carrying the same exercise price and maturing on the same date, is known as a:
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This type of trade is known as a straddle. It allows the investor to profit from significant movements in the stock's price, regardless of the direction.

A Combination Trade in Which an Investor Purchases a Put