Assume that you expect Australian Stock Market to decline significantly in the current year. Specify three trading strategies involving options which you may employ in this scenario.

Critically evaluate the advantages and disadvantages’/ risks involved in these strategies.

1- Introduction
2- Body part
3- Conclusion
Taking a Spread

i. Define Spreads;
ii. Bull and Bear Spreads
iii. Butterfly Spreads
iv. Calender Spreads
v. Diagonal Spreads
vi. Collar €“ Sell Call and buy the Put