Multiple Choice
Consider a position in a long straddle at strike 90 and a short straddle at strike 100, both for the same maturity. which of the following properties is valid for this position?
A) The payoff is increasing in the stock price.
B) The payoff is always positive.
C) The payoff is always negative.
D) The payoff is unbounded.
Correct Answer:
Verified
Correct Answer:
Verified
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