A straddle is the simultaneous purchase (or sale) of a put and call option with the same underlying asset,
A) Same exercise price, and expiration date.
B) Same exercise price but different expiration date.
C) Same expiration date but different exercise price.
D) All of the above.
E) None of the above.

Question

Quizplus · Accepted Answer

A straddle involves purchasing both a put and call option with the same underlying asset, exercise price, and expiration date. Options with different exercise prices or expiration dates would be different strategies, such as a strangle or calendar spread.

A Straddle Is the Simultaneous Purchase (Or Sale) of a Put