Which of the following strategies makes a profit if the stock price stays stable?
A) long call and short put
B) long call and long put
C) short call and short put
D) short call and long put

Question

Quizplus · Accepted Answer

Option C, short call and short put (also known as a short straddle), makes a profit if the stock price stays stable because the seller collects the premiums and retains them if the stock price does not move significantly, allowing both options to expire worthless.

Which of the Following Strategies Makes a Profit If the Stock