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Stock Trading MCQs

When is the straddle trading strategy appropriate?

When the price may move by a small amount

When an investor believes there will be a large decrease in stock prices

When an investor believes there will be a large increase in stock prices

When an investor believes there will be a large stock price movement, but does not know in which direction

Answer

Correct Answer: When an investor believes there will be a large stock price movement, but does not know in which direction

Explanation:

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