6 Questions
Which option strategy is the best choice to hedge against an anticipated large rise in the price of an underlying asset?
Long (bought) straddle
Which option strategy involves buying a call option and selling a put option, both with the same strike price and expiration date?
Long call, short put
Which option strategy involves buying a call option and selling a put option, both with different strike prices and the same expiration date?
Call bull spread
Which option strategy involves buying a call option and selling a put option, both with the same strike price and expiration date?
Long call, short put
Which option strategy involves buying a call option and selling a put option, both with different strike prices and the same expiration date?
Long straddle
Which option strategy involves buying a call option and selling a put option, both with the same strike price and different expiration dates?
Covered call
Test your knowledge on option strategies for hedging against anticipated large rises in the price of an underlying asset. Choose the best strategy among options such as long straddle, covered call, call bull spread, and more.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
