IDNLearn.com provides a collaborative platform for sharing and gaining knowledge. Ask your questions and receive reliable, detailed answers from our dedicated community of experts.

The FTSE index is at 5,100. A firm is short a straddle on the FTSE 100 struck at 5,100 and long a 5,000/5,200 strangle. If volatility were to increase,
a) The value of their position would increase.
b)The value of their position would be unaffected.
c) The value of their position would decrease.
d) any of the above is possible.