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You believe that the volatility of a stock is higher than indicated by market prices foroptions on that stock. You want to speculate on that
You believe that the volatility of a stock is higher than indicated by market prices foroptions on that stock. You want to speculate on that belief by buying or selling atthe-moneyoptions. What should you do?
A. Buy a strangle
B. Buy a straddle
C. Sell a straddle
D. Buy a butterfly spread
E. Sell a butterfly spread
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