If you initiate a short straddle with both options at-the-money, the options will each have a delta

Question:

If you initiate a short straddle with both options at-the-money, the options will each have a delta of approximately 50 and will offset each other just as with the long straddle. True or false?

LO.1

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Option Spread Strategies Trading Up Down And Sideways Markets

ISBN: B003O2SXRI

1st Edition

Authors: Anthony J Saliba ,Joseph C Corona ,Karen E Johnson

See More Books

Question Posted: Jul 19, 2024 07:03 PM

See More Questions

A company has a total assets of $120,000, current assets of $80,000, total liabilities of $50,000 and current liabilities of $25,000. What is the current ratio? a)4.80 to 1 b)3.20 to 1 c)2.40 to 1...
Pretzel Corporation owns 60 percent of Stick Corporation's voting shares. On January 1, 20X2, Pretzel Corporation sold $150,000 par value, 6 percent first mortgage bonds to Stick for $156,000. The...
1. What are the 3 possible ways of reducing the poverty-stricken in the Philippines concerning to economic growth and development? (3-5 sentences) Provide the disadvantages and advantages of each...
To complete the pipings in the newly constructed power plant, 60 men must work for 72 days. If all 60 men are employed at the start but the number working is decreased by 5 men at the end of each...
In what order should individuals be interviewed?
ZAZ stock is currently trading at $163 per share. A dividend of $1.47 per share is expected to be paid on the stock in two months. A three month European put option with $165 strike on ZAZ is trading...
Why are retrospective adjustments made to earnings per share ratios?
What are some issues surrounding the use of punishment?
Taussig Technologies Corporation (TTC) has been growing at a rate of 15% per year in recent years. This same growth rate is expected to last for another 2 years, then decline to gn = 5%. What will...
What are the break-even points for the long straddle: strike (plus or minus) the premium on the downside, and strike (plus or minus) the premium on the upside? LO.1
If you were long the XYZ March 50 straddle and XYZ had dropped in price you might consider rolling down the put to 40, leaving you with the 4050 ______________. LO.1
Kreter Concepts provides the following information about its postretirement benefit plan for the year 2019. Service cost........................................................Russian Rubble 45,000...
What are the four Ps (product, place, price, and promotion) of the services offered by Carnival Cruise Lines? Do these services go through a product life cycle?
Schedule B During the year, Joseph earned and received $12,500 from clients related to this business. His expenses were as follows: Advertising $175 Supplies $500 Legal Fees $750 Liability...
What are the latest trends in the Systems Analysis and Design around the business of tesla companies? Explain
4. (12 points) Sections 3.1-3.2 Solve each of the following for z E C. Do not use any formula for inverse functions in Section 3.7. a. sin z = 0. b. tanz = 1. c. 1+2 = 0.
Lucie (2017) argued that there is a troubling disconnect between teamwork rhetoric and the realities of patient care. In other words, there is a lot of talk about teamwork, but it does not always...
Two sinusoidal waves of the same frequency travel in the same direction along a string. If ym1 = 3.0 cm, 4.0 cm, 1 = 0, and 1 = /2 rad, what is the amplitude of the resultant wave?
Controls can be identified based on their function. The functions are preventive, detective, and corrective. A. True B. False
An industrial firm can purchase a special machine for $50,000. A down payment of $5,000 is required, and the unpaid balance can be paid off in five equal year-end installments at 7% interest. As an...
A sinking fund is established to discharge a debt of $60,000 in 10 years. If deposits are made at the end of each 6-month period and interest is paid at the rate of 2%, compounded semiannually, what...
You need to determine the (1) ownership unit cost (hourly cost) for a D6 dozer. Use both Time Value Method and Average Annual Value (AAV) Method (Assumes straight-line depreciation). (2) Operation...

If you initiate a short straddle with both options at-the-money, the options will each have a delta

Question:

Step by Step Answer:

Option Spread Strategies Trading Up Down And Sideways Markets

Students also viewed these Business questions