An option investor believes that the stock price of a, Financial Management

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An option investor believes that the stock price of a

An option investor believes that the stock price of a company will have a big jump in the next 3 months. But he is uncertain about the direction of the jump. Which of following strategies should the investor take to profit from his belief?

a. sell a straddle

b. sell a strangle

c. buy a butterfly spread

d. buy a straddle

e. buy a bull spread

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Financial Management: An option investor believes that the stock price of a

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