Question 9 (12 points) Investors choose investment strategies based on their expectation. For each of the following expe

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Question 9 12 Points Investors Choose Investment Strategies Based On Their Expectation For Each Of The Following Expe 1 (33 KiB) Viewed 51 times

Question 9 (12 points) Investors choose investment strategies based on their expectation. For each of the following expectation, please write down one appropriate option-based trading strategies and briefly explain why you choose that strategy (a) (4 points) You expect the stock price to move significantly, but is uncertain of the direction. You want to profit from it. At the same time, you do not want to invest too much to initiate the trading strategy. (b) (4 points) You are bullish towards a stock and hope to profit from it. At the same time, you are also looking for downside protection. (C) (4 points) You expect the stock price too decrease. You do not want to invest too much to initiate the strategy and you understand that this may also limit the upside potential. 4