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  3. which of the following statements about a straddle

Which of the following statements about a straddle is NOT true? A straddle is more...

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Finance

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Which of the following statements about a straddle is NOT true? A straddle is more expensive than a comparable strangle (assuming that the underlying asset and the maturity are the same). The payoff of a straddle is generally higher than the payoff a comparable strangle (assuming that the underlying asset and the maturity are the same). A long straddle should be used if you believe that the volatility of the underlying asset is underestimated by the market. A long straddle generates the highest profit when the price of underlying asset stays close to the strike price

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