Series 7 - General Securities Representative Exam
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When options volatility is low, it may be a good time to
Buy options
A
Sell puts
B
Sell strangles
C
Buy calendar spreads
D
Explanations
When options volatility is low, options premiums are low. This could be a good time to buy options; as they may be historically "cheap". Selling puts and strangles involves collecting premium, which is low when volatility is low. There is not enough information to determine if buying calendar spreads makes sense