Question: Which 1-yr option strategy will give the highest expected net profit if you are confident that the underlying stock price will be less volatile over

Which 1-yr option strategy will give the highest expected net profit if you are confident that the underlying stock price will be less volatile over the next year than what the market prices reflect? (Please explain)

  • A. Long put and long call
  • B. Short put and short call
  • C. Long put and short call
  • D. Short put and long cal

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