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You are planning on forming a strategy by using options on ABC stock, and you think the price of ABC stock will stay in a

You are planning on forming a strategy by using options on ABC stock, and you think the price of ABC stock will stay in a range around $45 for a while. The price of the call and put options with an exercise price of $40 are $3 and $5, respectively. What strategy would be the best for you in this situation?

Multiple Choice

a) sell a call

b) purchase a put

c) sell a straddle

d)buy a straddle

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