How can a straddle be created?
A. Buy one call and one put with the same strike price and same expiration date
B. Buy one call and one put with different strike prices and same expiration date
C. Buy one call and two puts with the same strike price and expiration date
D. Buy two calls and one put with the same strike price and expiration date
A
A straddle consists of one call and one put where the strike price and time to maturity are the same. It has a V-shaped payoff.
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