You Are Considering Two Option Contracts with the Same Strike

question 255

Multiple Choice

You are considering two option contracts with the same strike price. Ignoring costs, which one of the following combinations will increase the value of a firm if prices move either up or down?

• A) Buying both a call and a put.
• B) Both buying and selling a call.
• C) Buying a call and selling a put.
• D) Buying a put and selling a call.
• E) Both selling a put and a call.

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