Which of the following is the best strategy for an expected fall in the market?
A)long strip (2 puts and 1 call)
B)put bull spread
C)calendar spread
D)butterfly spread
E)none of the above

Question

Quizplus · Accepted Answer

A long strip, which involves buying 2 puts and 1 call, is designed to profit from a significant move in the underlying asset's price, especially a downward move, making it a suitable strategy for an expected fall in the market.

Which of the Following Is the Best Strategy for an Expected