a. What is the aim of a short (or top) strangle strategy? b. Create a short strangle
Question:
b. Create a short strangle by writing a call with strike price K3 = 22.50 and a put with strike price K1 = 20.
Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity.
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a A strangle like a straddle is a bet on volatility Option traders often sel...View the full answer
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Related Book For 
An Introduction to Derivative Securities Financial Markets and Risk Management
ISBN: 978-0393913071
1st edition
Authors: Robert A. Jarrow, Arkadev Chatterjee
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