Question
1- Which creates a STRANGLE? A-Buy two $55 puts, buy one $55 call B-Buy one $55 put, buy one $65 put and sell two $60
1- Which creates a STRANGLE?
A-Buy two $55 puts, buy one $55 call
B-Buy one $55 put, buy one $65 put and sell two $60 puts
Buy one $55 put, buy one $65 call
C-Sell two $55 puts, buy one $60 put and buy one $65 put.
D-Sell one $55 put, buy one $60 call
6- Which of the following can be used to create a short position in a European call option on a stock?
A-Sell the stock and buy a put option (with borrowing).
B-Buy the stock and buy a put option (with borrowing).
C-Buy the stock and sell a put option (with lending).
D-Sell the stock and sell a put option (with lending).
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