ZuoTi.Pro
Question

12. Which of the following has the potential to lose the most money? a long butterfly...

12. Which of the following has the potential to lose the most money?

  1. a long butterfly spread
  2. a short strangle
  3. a long strangle
  4. a long condor
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Short Strangle because in other strategies there is capping on losses except short strangle.

So, the correct Option is B

NOTE: The answer to your question has been given below/above. If there is any query regarding the answer, please ask in the comment section. If you find the answer helpful, do upvote. Help us help you.

0 0
Add a comment
Know the answer?
Add Answer to:
12. Which of the following has the potential to lose the most money? a long butterfly...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Draw the shapes of each of the following: (12 points)       Short Call       Long Put...

    Draw the shapes of each of the following: (12 points)       Short Call       Long Put      Short Strangle                                                                          Long Straddle       Long Call                                                                                Bear Spread    Short Straddle                                                                             Short Put      Bull Spread                                                                            Long Butterfly    Short Butterfly                                                                          Long Strangle

  • When you enter one of the following four positions: (i) long a butterfly call spread, (ii)...

    When you enter one of the following four positions: (i) long a butterfly call spread, (ii) short a butterfly call spread, (iii) long a butterfly put spread, (iv) short a butterfly put spread, do you expect a credit or debit in your account?

  • NEED HELP!! Which of the following are volatility strategies? Protective put Butterfly spread iii. Straddle A....

    NEED HELP!! Which of the following are volatility strategies? Protective put Butterfly spread iii. Straddle A. į and ii B. į and iii C. ii and ii D. All of the above E. None of the above

  • In which of the following is a firm MOST likely to lose direct control over value...

    In which of the following is a firm MOST likely to lose direct control over value creation activities? a. Acquisition b. Strategic alliance c. Vertical integration d. Outsourcing e. Merger

  • Which one of the following statements is the MOST accurate? (a) A permanent increase in a...

    Which one of the following statements is the MOST accurate? (a) A permanent increase in a country’s money supply causes a proportional long-run depreciation of its currency against foreign currencies. (b) A temporary increase in a country’s money supply causes a proportional long-run depreciation of its currency against foreign currencies. (c) A permanent increase in a country’s money supply causes a proportional long-run appreciation of its currency against foreign currencies. (d) A permanent increase in a country’s money supply causes...

  • Most firms borrow money to finance some of their assets, and most will choose to borrow...

    Most firms borrow money to finance some of their assets, and most will choose to borrow some long-term funds and some short-term funds. Which group of lenders would put greater emphasis on a firm's liquidity ratio when evaluating a potential borrower? Long-term lenders Short-term lenders The most recent data from the annual balance sheets of Fitcom Corporation and Scramouche Opera Company are as follows: Fitcom Balance Sheet December 31" (Millions of dollars) Scramouche Opera Fitcom Scramouche Opera Company Corporation Company...

  • Home Task - Chapter 11. Long and Short Options Questions 1. Which is more profitable: to...

    Home Task - Chapter 11. Long and Short Options Questions 1. Which is more profitable: to sell (sell-to-close) or exercise a long option before expiration? 2. Would a long option, which expired "in-the-money" be automatically exercised? 3. What is the highest potential gain/loss for a long call? 4. What is the highest potential gain/loss for a long put? 5. What is the difference between a naked call and a short call? 6. What is the difference between writing an option...

  • QUESTION 3 Of all the following that could be used as money, which would be most...

    QUESTION 3 Of all the following that could be used as money, which would be most likely to be characterized as fiat money? Chocolate bars Silver jewellery Gum wrappers Salt QUESTION 4 According to the classical dichotomy, which of these variables is not affected by monetary policy? The price level The nominal interest rate The real interest rate Nominal GDP QUESTION 5 According to the quantity theory of money, if the growth rate of money supply increases by 3 percentage...

  • 12 _ 42) A firm that has large securities holdings and wishes to raise money for...

    12 _ 42) A firm that has large securities holdings and wishes to raise money for a short length of time may be able to find the cheapest financing from which of the following?! A) repurchase agreement B) commercial paper C) reverse repurchase agreement D) bankers' acceptance

  • 1. The long-run model determines determines a. potential output; long-run inflation, current output, current inflation b....

    1. The long-run model determines determines a. potential output; long-run inflation, current output, current inflation b. potential output; unemployment, current output; long-run inflation c. current output; long-run inflation; unemployment, current inflation d. potential output; unemployment; unemployment, current inflation e. current output: unemployment; potential output; current inflation andwhile the short-run model and , and 2. The IS curve describes short-run movements in an economy via which of the following? ↑Interest rate ↑ Investment → ↓ Output ↑Interest rate → ↓Investment →...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT