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Homework answers / question archive / Which strategy benefits from upside price movement and has some protection should the price of the security fall? Multiple Choice Otong put Bull spread Shon call Straddle

Which strategy benefits from upside price movement and has some protection should the price of the security fall? Multiple Choice Otong put Bull spread Shon call Straddle

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Which strategy benefits from upside price movement and has some protection should the price of the security fall? Multiple Choice Otong put Bull spread Shon call Straddle

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Answer-

The correct option is Bull Spread.

This strategy benefits from upside price movement and has some protection when the price of the security fall.

The options long put, short call and Straddle are incorrect.

A straddle is a neutral options strategy that involves simultaneously buying both a put option and a call option for the underlying security with the same strike price and the same expiration date.