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You are the owner of gold at $ 1 , 9 8 0 ; the current market price. Consider the following option prices for the
You are the owner of gold at $; the current market price. Consider the following option prices for the next month: Calls Last Strike PutsLast You are bullish on gold, but expect some volatility. Lay out the mechanism for creating each of the following structures given the option prices and recommend which ones are appropriate to fit into your expectations. Discuss volatility and direction. aStraddle bBull spread cStrangle dButterfly spread eCollar Question options:
You are the owner of gold at $; the current market price.
Consider the following option prices for the next month:
Calls Last Strike PutsLast
You are bullish on gold, but expect some volatility. Lay out the mechanism for creating each of the following structures given the option prices and recommend which ones are appropriate to fit into your expectations. Discuss volatility and direction.
aStraddle
bBull spread
cStrangle
dButterfly spread
eCollar
Question options:
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