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yawa3891 [41]
3 years ago
5

A trader wants to gain a profit by expecting a significant move in either direction of the underlying stock. Which strategy best

aligns to this goal?
Business
1 answer:
alexira [117]3 years ago
3 0

The best strategy for this trader, who wants to profit from either direction of the underlying stock, is <em>A. Long Put and C. Short Call.</em>

In securities trading, a call option gives the trader the <em>right to purchase </em>underlying security <em>without any obligation</em>.  On the other hand, a put option grants the trader the <em>right to sell</em> the underlying security <em>without any obligation</em>.

Thus, the trader will profit by using options A and C.

Learn more: brainly.com/question/24767538

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