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Business, 18.12.2019 03:31 jodonw1955

The common stock of the avalon corporation has been trading in a narrow range around $40 per share for months, and you believe it is going to stay in that range for the next 3 months. the price of a 3-month put option with an exercise price of $40 is $3, and a call with the same expiration date and exercise price sells for $4. what would be a simple options strategy using a put and a call to exploit your conviction about the stock price's future movement?

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