22. You are expecting a stock to either collapse or rise sharply after an FDA approval review. What strategy works best under these circumstances? a. Calendar spread b. Straddle c. Vertical credit spread d. Strangle e. Butterfly 23. You expect the market to rise, as it usually does in January. What strategy works best under these circumstances? a. Calendar spread b. Straddle c. Vertical debit spread d. Strangle e. Butterfly 24. You notice a remarkably high premium for near-expiry options. What strategy works best under these circumstances? a. Calendar spread b. Straddle c. Vertical debit spread d. Strangle e. Butterfly 25. Which has a better payoff, a covered write, or bull call spread, given this information? a. Covered write: Long 100 shares; STO 75 call. b. 70-75 bull call spread c. 75-80 bull call spread d. 70-80 bull call spread STOCK PRICE: $75.57575.61 CALLS: BID ASK $7.10 $9.10 75 STRIKE $5.20 $6.20 70 STRIKE 80 STRIKE $3.30 $4.20