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You Have a Portfolio with Long Positions in Both Puts

Question 22

Multiple Choice

You have a portfolio with long positions in both puts and calls. The volatility in the market rises.


A) Your portfolio gains in value.
B) Your portfolio gains on the calls and loses on the puts.
C) Your portfolio gains on the puts and loses on the calls.
D) Your portfolio is now more risky and is therefore worth less than before.

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