=+4 Adam, a speculator, is convinced that the stock market will fall significantly in the forthcoming months.

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=+4 Adam, a speculator, is convinced that the stock market will fall significantly in the forthcoming months. The current market index (14 August) level is 4997 (FTSE 100).

He is trying to decide between two strategies to exploit this market fall:

Buy five 5025 December put options on the FTSE 100 Index for a premium of 191.

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