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You expect a sizable jump in the stock price but are not sure of the direction in which the stock will go . Which of

You expect a sizable jump in the stock price but are not sure of the direction in which the stock will go

.

Which of the following alternatives would be best?

Question

12

options:

Sell a straddle.

Buy a call and delta hedge it

.

Buy put options.

Buy call options.

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