Explanation:
A straddle is an options trading strategy that involves buying both a put option and a call option for the same underlying asset, with the same strike price and the same expiration date. A strangle is similar but involves options with different strike prices (usually out-of-the-money). A bear spread is constructed using either two calls or two puts with different strike prices.
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Q.14 A strategy where a long position in a call option is combined with a long position in a put option, such that both options have the same strike price and expiration date, is known as
A
Strangle
B
Bear spread
C
Straddle
D
Bearish option
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