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Which one-year option strategy will give the highest expected net profit if a. you are very confident that the stock price will move VERY LITTLE
Which one-year option strategy will give the highest expected net profit if a. you are very confident that the stock price will move VERY LITTLE over the next year, b. out-of-the-money options are much cheaper than at-the money options?
a) Long a straddle
b) Long a strangle
c) Short a straddle
d) Short a strangle
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