Trader looking to profit from relatively stable stock market

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Reference no: EM132036965

1. An option trader looking to profit from a relatively stable stock market with very little upward or downward movement can (hint: the forecast is for neutral price action, a flat market) :

Adopt short straddle strategy

Use a swap contract

Short futures contracts

Adopt long straddle strategy

2. Which of the following describes a short position in an option?

A position in an option lasting less than one month

A position where an option has been sold

A position in an option lasting less than six months

A position in an option lasting less than three months

Reference no: EM132036965

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