ACI
3I0-012 · Question #294
What is the purpose of a short straddle option strategy?
The correct answer is A. To anticipate lower volatility in the price of the underlying commodity. See the full explanation below for the reasoning.
Question
What is the purpose of a short straddle option strategy?
Options
- ATo anticipate lower volatility in the price of the underlying commodity
- BTo anticipate moderately high volatility in the price of the underlying commodity
- CTo anticipate increasing volatility in the price of the underlying commodity
- DTo anticipate very high volatility in the price of the underlying commodity
How the community answered
(19 responses)- A79% (15)
- B11% (2)
- C5% (1)
- D5% (1)
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