Question
KP industries stock price has been trading in a narrow range around $40 per share for months, and you believe it is going to stay
KP industries stock price has been trading in a narrow range around $40 per share for months, and you believe it is going to stay in that range (i.e., not move much) for the next three months. What would be a simple options strategy using a put and a call to exploit your conviction about the stock price's future movement?
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Buy a straddle
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Sell a straddle
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Sell a call
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Purchase a put
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Introduction To Derivatives And Risk Management
Authors: Robert Brooks, Don M Chance
9th Edition
1133190197, 978-1133190196
