A combination of two puts and one call on the same stock with the same exercise price and expiry date is called a:
A) strip.
B) strap.
C) straddle.
D) spread.

Question

Quizplus · Accepted Answer

A strip is a trading strategy that involves purchasing one call option and two put options with the same strike price and expiration date, typically used when an investor expects a significant price movement but is more concerned about a potential decline in the underlying asset's price.

A Combination of Two Puts and One Call on the Same