Meri Beth Rank believes that stock of Opp & Company is going to be extremely volatile over the next month.Meri Beth expects the stock to move by 50% but she is not sure whether the stock of Opp & Company will rise or fall.A possible strategy that Meri Beth could employ to profit from her expectation is

Question

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The best answer is a,because a long straddle is a strategy that is designed to profit from very large movements in stocks whether it moves up or down.There is a chance that she may earn a profit from strategies C or D but they are not the best answer since Meri Beth is not sure which way the stock of Opp & Company will move.

Meri Beth Rank Believes That Stock of Opp & Company