Question: Which one-year option strategy will give the highest expected net profit if a. you are very confident that the stock price will move VERY LITTLE

Which one-year option strategy will give the highest expected net profit if a. you are very confident that the stock price will move VERY LITTLE over the next year, b. out-of-the-money options are much cheaper than at-the money options?

a) Long a straddle

b) Long a strangle

c) Short a straddle

d) Short a strangle

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