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You believe that the crude oil market prices will be unusually stable for the near future. However, the market believes the opposite, i.e., investors think
You believe that the crude oil market prices will be unusually stable for the near future. However, the market believes the opposite, i.e., investors think that prices will be volatile. Which of the following options contracts should you buy if you'd like to profit from increased volatility in crude oil prices in the future?
Buy a call and a put option contract at the same strike price.
Sell a call and a put option contract at the same strike price.
Buy a call only.
Buy a put only.
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