Two strategies that would be appropriate for situation

Reference no: EM131326024

Suppose that you are following the stock of a firm that has been experiencing severe problems. Failure is imminent unless the firm is granted government guaranteed loans. If the firm fails, its stock will, of course, fall substantially.

If the loans are granted, it is expected that the stock will rise substantially. Identify two strategies that would be appropriate for this situation. Justify your answers.

Reference no: EM131326024

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