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Your friend claims that a long straddle position is considered a speculation on the asset's...

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Finance

Your friend claims that a long straddle position is considered a speculation on the asset's volatility, but isn't sure why. You explain that the strategy [ Select ] ["makes $", "loses $", "is flat"] if underlying prices stay constant, but benefits from large [ Select ] ["up", "down", "either up or down"] movements in underlying prices.

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