n NISM Certifications
VIII NISM Series VIII
Medium

A 'straddle' involves buying a call and a put with the same strike and expiry. This strategy profits when the market is expected to _______.

Practice question from NISM Series VIII - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Be stable

  2. Move significantly in either direction

    Correct answer

  3. C

    Move sideways

  4. D

    Decline steadily

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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NISM Series VIII - Mock Test 3