Derivatives Quiz 11

If you think the volatility will be very high, your best strategy will be a

• Straddle strategy

• Strangle strategy

• Butterfly strategy

If you believe in a short term volatility, you need invest in options with big

• Gamma

• Vega

• Delta

Long a call at 150, short a call at 200, long a put at 150, short put at 50 is a

• Strangle strategy

• Butterfly strategy

• Straddle strategy

If you believe in a long term volatility, you need invest in options with big

• Gamma

• Vega

• Delta

What strategy is the most expensive

• Straddle

• Strangle strategy

• Butterfly strategy