A strap is a less expensive bullish strategy than a straddle.

Name: A strap is a less expensive bullish strategy than a straddle.
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Question

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A strap involves buying two call options and one put option with the same strike price and expiration date, while a straddle involves buying one call option and one put option with the same strike price and expiration date. The cost of purchasing two call options in a strap can make it more expensive than a straddle.

A Strap Is a Less Expensive Bullish Strategy Than a Straddle