Question: An investor is considering implementing either a long straddle or a long strangle on a particular stock. Which of the following statements are true? 1.)The

An investor is considering implementing either a long straddle or a long strangle on a particular stock. Which of the following statements are true?

1.)The range of stock prices that result in a loss is larger for the straddle than the strangle

2.) The payoff for the straddle and the payoff for the strangle will be identical if and only if all the options expire at the money

3.)The investor is expecting high volatility in the stock

4.)The profit of the straddle will always be higher than the profit for the strangle

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