Comment on the following statement: Options are nothing more than a side bet on the direction stock prices are going to move.
2. Briefly explain why the following statement is wrong: If you buy an XYZ JUN 25 call option in March, the only way you can make a profit is if the price of XYZ closes above 25 on expiration day in June.
3. Briefly explain how it is possible for an out-of-the-money put option on XYZ to sell for more than an in-the-money put option on XYZ.
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