des Week $4$: $[$IN$-410]$

google stock name at Duid$-$Duckca

carnancouedu

Guidet

Infernet Achive

Imported from.

in the money

Question $7$

$1$ pts

The common stock of the Avalon Corporation has been trading in a narrow range around $$40$ per share for months, and you believe it is going to stay in that range for the next $3$ months. The price of a $3$ month put option with an exercise price of $$40$ is $$3,$ and $2$ call with the same expiration date and exercise price sells for $$4.$

What would be a simple options strategy using a put and a call to exploit your corriction about the stock price's future movement?

purchase a put

buy a straddle

sell a call

sell a stradds

Question $8$

$1$ pts

Which strategy benefits from upside price movement and has some protection when the price of the security fall?

Long put

Short call

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