Question 2 (2 points) The current stock price of Provi Inc. is $49.38. After a comprehensive research on the industry and the company, Amy believes that the stock price will either rise or fall by a large amount (over 20%) in 3 months, but she is not sure about the direction of the movement. Which of the following statements is/are correct? (All options are written on the stock of Provi Inc.) Taking a long position in a strangle (long a call at strike $55 and long a put at strike $45) maturing in 3 months is also suitable, but a strangle is more expensive than a straddle. Shorting a straddle may have unlimited losses. She can also short a butterfly (short a call at strike $45, long 2 calls at strike $50, and long 1 call at strike $55) maturing in 2 months. Taking a long position in a straddle maturing in 3 months (long a call at strike $50 and long a put at strike $50) is a suitable strategy