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A trader anticipates that a stock price will not rise above $X price after 3 months. The trader wants to make upfront money from his/her
A trader anticipates that a stock price will not rise above $X price after 3 months. The trader wants to make upfront money from his/her expectation as of today. However, if the stock price rises above $X, the trader would lose based on the market price in the future. Which option contract would the trader likely enter?
A. Long a call option
B. Short a call option
C. Long a put option
D. Short a put option
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