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Suppose you are uncertain about the future price of oil. You expect (i) a high volatility environment and (ii) a bull market to be more
Suppose you are uncertain about the future price of oil. You expect (i) a high volatility environment and (ii) a bull market to be more likely than a bear market.
a) What trading strategy involving forwards would you choose? Explain your answer. [Word count: 100 words]
b) What trading strategy involving options would you choose? Explain your answer. [Word count: 150 words]
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