Finra Exam Series-7 Topic 3 Question 98 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 98
Topic #: 3

[All Series-7 Questions]

Which of the following options positions is characteristic of a short straddle?

Along one put and short one call

Blong one call and short one put

Clong one put and short one call

Dlong one call and long one put

Show Suggested Answer

Suggested Answer: C

long one put and short one call. This is a short straddle. A position that is long one put and long one call is a long straddle.

by Francesco at Sep 19, 2024, 07:43 AM

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Aretha

2 months ago

This question is making my head spin like a rotisserie chicken. But I'm still gonna go with C.

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Carman

7 days ago

User 4: I agree with Rodolfo, C) long one put and short one call seems right.

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Rodolfo

8 days ago

User 3: I'm going with B) long one call and short one put.

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Arlyne

9 days ago

User 2: No, I believe it's C) long one put and short one call.

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Lenna

1 months ago

I think the answer is A) long one put and short one call.

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Alpha

2 months ago

C is the way to go. It's like a short straddle is a sandwich, and you're the filling between the put and call.

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Rosann

2 months ago

I was just about to say C, but then I started doubting myself. Now I'm second-guessing my answer.

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Sharee

26 days ago

Yes, that's correct. A short straddle involves selling both a call and a put at the same strike price.

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Ryan

29 days ago

I think it's A too, because a short straddle involves selling a call and a put at the same strike price.

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Samira

1 months ago

A) long one put and short one call

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Katlyn

2 months ago

Definitely C. That's the classic short straddle position.

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Malcolm

1 months ago

It's a neutral strategy that profits from low volatility.

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Tammi

2 months ago

That's correct. A short straddle involves selling a call and a put at the same strike price.

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Kina

2 months ago

C) long one put and short one call

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Celestina

3 months ago

I'm not sure, but I think the answer is C) long one put and short one call.

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Kami

3 months ago

I agree with Thea, because a short straddle involves selling a call and a put at the same strike price.

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Thea

3 months ago

I think the answer is A) long one put and short one call.

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Kristin

3 months ago

I think the answer is C. A short straddle is when you're long one put and short one call.

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Tracey

2 months ago

No problem! It's important to understand the different options positions in trading.

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King

2 months ago

Oh, I see. Thanks for the clarification.

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Dyan

2 months ago

Actually, the correct answer is A. A short straddle involves being long one put and short one call.

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Kent

2 months ago

I think the answer is C. A short straddle is when you're long one put and short one call.

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