Question: Straddles have been described as volatility plays. Explain what this means for both long and short straddle positions. Given the fact that volatility is a

Straddles have been described as “volatility plays.” Explain what this means for both long and short straddle positions. Given the fact that volatility is a primary factor in how options are priced, under what conditions might an investor who believes that markets are efficient ever want to create a straddle?

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