Finra Exam Series-7 Topic 1 Question 81 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 81
Topic #: 1

[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 Britt at Feb 09, 2024, 02:52 PM

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Cristy

12 months ago

I think D) long one call and long one put is not a characteristic position of a short straddle because it involves buying both options instead of selling.

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Barrie

1 years ago

I agree with A) long one put and short one call, it makes sense for a short straddle strategy.

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Nada

1 years ago

I think A) long one put and short one call is the correct position because it involves selling both a call and a put option.

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Twana

1 years ago

I'm not sure, can someone explain why C) long one put and short one call is the characteristic position?

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Carli

1 years ago

I disagree, I believe it is A) long one put and short one call.

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Fernanda

1 years ago

I think the characteristic position of a short straddle is C) long one put and short one call.

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