What comprises a long straddle? What comprises a short straddle? What comprises a call spread? What...

What comprises a long straddle? What comprises a short straddle? What comprises a call spread? What comprises a put spread?

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Expert Solution

Long straddle is buying call and buying put of same strike
Short straddle is selling call and selling put of same strike
Call spread is buying a call and selling call of different strike
Put spread is buying a put and selling put of different strike

jeff jeffy answered 2 years ago

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