A strip (2 puts and one call)would cost more than a straddle but would pay off more if the stock falls.

Name: A strip (2 puts and one call)would cost more than a straddle but would pay off more if the stock falls.
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Question

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A strip involves buying two put options and one call option, which means a higher upfront cost compared to a straddle. However, if the stock falls, the payoff from the put options in the strip will be higher, resulting in a greater profit overall.

A Strip (2 Puts and One Call)would Cost More Than