ACI
3I0-012 · Question #658
What is the purpose of a long strangle option strategy?
The correct answer is D. To anticipate very high volatility in the price of the underlying commodity. See the full explanation below for the reasoning.
Question
What is the purpose of a long strangle option strategy?
Options
- ATo anticipate very low volatility in the price of the underlying commodity
- BTo anticipate moderately high volatility in the price of the underlying commodity
- CTo anticipate moderate volatility in the price of the underlying commodity
- DTo anticipate very high volatility in the price of the underlying commodity
How the community answered
(38 responses)- A3% (1)
- B16% (6)
- C11% (4)
- D71% (27)
Community Discussion
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