Series 7 - General Securities Representative Exam
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A trader simultaneously sold a 40 Put for 6 and a 60 call for 7. The underlying stock is trading at 50. He collected 13.00 in premium. He just sold a
Straddle
A
Strangle
B
Bertical Spread
C
Butterfly
D
Explanations
He sold a strangle. Selling an out of the money call and an out of the money put simultaneously is selling a strangle