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A. Suppose the current stock price is $100. If the stock price increases soon, which action will provide the highest rate of return? buy $100

A. Suppose the current stock price is $100. If the stock price increases soon, which action will provide the highest rate of return?

buy $100 call, buy $100 put

buy $95 call, short $105 call

short $95 call, buy $105 call

buy $100 call, short 2 units of $100 calls, buy $105 call

B.You are positive that the XYZ stock price will change a lot in the near future. But you are not certain about the direction of price change. Which strategy is the best to use in this scenario?

Bull spread

Bear spread

Butterfly spread

Straddle

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