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You believe that the volatility of a stock is higher than indicated by market prices for options on that stock. You want to speculate on
You believe that the volatility of a stock is higher than indicated by market prices for options on that stock. You want to speculate on that belief by buying or selling at-themoney options. What should you do? (a) Sell a strangle (b) Buy a straddle (c) Sell a straddle (d) Buy a butterfly spread (e) Sell a butterfly spread
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