An oil producing firm is considering using some kind of option strategy. What oil option strategy is
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Question:
An oil producing firm is considering using some kind of option strategy. What oil option strategy is best i the firm's goal is to maximize the chances of earning positive profits and minimize the chances of suffering loses, and if the firm's manager believes that there are good chances of large oil price decreases between now and end of the year (and he is correct in his belief)?
a) long call options
b) short call options
c) long put options
d) short put options
e) combine a long call and a long put
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