An example of a straddle is:
A) Buying a Jan 25 put and a Jan 30 call
B) Buying a Jan 30 put and selling a Jan 30 call
C) Buying a Jan 30 put and a Feb 30 call
D) Buying a Jan 30 put and a Jan 25 call
E) Selling a Jan 30 put and a Jan 30 call

Question

Quizplus · Accepted Answer

A straddle involves buying or selling both a call and a put option with the same strike price and expiration date. Option E describes selling both a Jan 30 put and a Jan 30 call, which is a short straddle.

An Example of a Straddle Is