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Options Trading MCQs

What would an investor who is employing the straddle technique hope to happen?

That the price will move in a tight range, not varying much

That they can sell the underlying stock for more than the option makes

That the option will expire without selling

That the price will move drastically in one direction, up or down

Answer

Correct Answer: That the price will move drastically in one direction, up or down

Explanation:

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