Chapter 07 · Section 7.1

Short Strangle Question 2

To put on this September 40 - 50 short strangle, you:

a) buy the 40 call and sell the 50 put.
b) sell the 40 call and buy the 50 put.
• c) buy the 50 call and buy the 40 put.
  No.
  d) sell the 40 call and sell the 50 put.
  e) sell the 50 call and sell the 40 put.