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Assume that the stock market begins a period of sustained decreases after a pause. Outline an options strategy that would help someone benefit from this
Assume that the stock market begins a period of sustained decreases after a pause. Outline an options strategy that would help someone benefit from this improvement in the stock market and how this should work.1. At present, the risk spread for US Government bonds is widening. Define the risk spread, how it is measured, and how this widening provides information about future rates of economic growth. Considering these widening risk spreads, outline how an investor can profit from this. Explain how an appreciation of the US$ can be expected to impact economic growth, interest rates and the stock market in the US. The following data is from the bond market in 2009 and 2010: 3-Month 10-Year Baa 10-year - US Treasury Bill US Treasury Bond 2009Q4 0.057% 3.46% 6.33% m 0.107% 3.72% 6.29% m 0.147% 3.49% 6.17% What was the bond market's forecast of future economic activity during this period? Provide the basis for you assessment
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