Question: Both call and put options on a stock with the same strike price and expiration date are available. An investor feels that the stock price
Both call and put options on a stock with the same strike price and expiration date are available. An investor feels that the stock price is likely to experience a big price move and considers a decrease in the stock price to be more likely than an increase. Which one of the following strategies is the best one the investor can follow?
Group of answer choices
Long two call options and long two put options
Long one call option and short one put option.
Long one call option and short two put options
None of the above
Long one call option and long two put options
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