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A pharmaceutical company is awaiting FDA approval for a blockbuster drug with a very large profit potential. The market believes, and you concur, there is
A pharmaceutical company is awaiting FDA approval for a blockbuster drug with a very large profit potential. The market believes, and you concur, there is a 50-50 chance it will be approved/disapproved. You should consider:
a) a strangle
b) a slightly out-of-the-money long call
c) a slightly out-of-the-money long put
d) butterfly spread
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