Academic/26

Refer/WI/ACAD/18

SHRI RAMSWAROOP MEMORIAL GROUP OF PROFESSIONAL COLLEGES

MBA [SEM IV (MBA- 41,42)]
Surprise Test
(Session: 2019-20)
FINANCIAL DERIVATIVES
(KMB-FM-05)
Time:10 Minutes Max. Marks:05

Name of Students: Roll No.

(To be filled by the students)
Joe believes that the volatility of a stock is higher than indicated by market prices for options on that stock. He
wants to speculate on that belief by buying or selling at-the-money options.
Determine which of the following strategies would achieve Joe’s goal.
(A) Buy a strangle
(B) Buy a straddle
(C) Sell a straddle
(D) Buy a butterfly spread
(E) Sell a butterfly spread

Mr. Vivek Singh Rana_08/05/2020