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1. Explain why the credit crisis caused a lack of liquidity in the secondary markets for many types of debt securities? Explain how such a lack of liquidity would affect the prices of the debt securities in the secondary markets.

2. The long strangle (Buy one call option and one put option on the same underlying stock with the same time to expiration but different exercise prices (Call’s exercise price must be higher than the Put’s))

Financial Management, Finance

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