Explain how would you form an options strategy

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Reference no: EM132019609

Suppose a stock has historical volatility of 15% and the market is pricing options on that stock based on this historical volatility. The volatility will increase 25% in the future.

The stock is trading at $35.00 and you want to make a profit.

How would you form an options strategy?

Reference no: EM132019609

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