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QUESTION 1 In terms of straddle strategy, what is the expectation of the investor who buys that strategy? Underlying stock price to go down Underlying

QUESTION 1

  1. In terms of straddle strategy, what is the expectation of the investor who buys that strategy?

    Underlying stock price to go down

    Underlying stock price to go up

    Volatility goes down

    Volatility goes up

    None above

QUESTION 2

  1. Which one of the following strategy offers non-negative payoff?

    Bullish spread

    Buying a call

    Buying a put

    Straddle

    All above

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