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Either hedging a portfolio or increasing the returns, managers use one or a combination of five option strategies: spreads, straddles, strangles, covered calls, and condors. Select two of these strategies, explain how it works, and provide a specific example. In some of these strategies, there are several combinations, i.e., bull spreads and bear spreads. You may select a specific strategy for your example.

Around 300 words.

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