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Which of the following statements about options is INCORRECT? A long straddle is best deployed when the underlier is expected to trade sideways (no volatility)
Which of the following statements about options is INCORRECT?
A long straddle is best deployed when the underlier is expected to trade sideways (no volatility) in the foreseeable future | ||
A short strangle potentially faces unlimited losses | ||
A covered call has limited upside but unlimited downside exposures | ||
A collar is formed by combining a covered call and a protective put |
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