An option porfolio exhibits high unfavorable sensitivity to increases in implied volatility and while experiencing significant daily losses with the passage of time Which strategy would the trader most likely employ to hedge the portfolio?
a. Sell short-dated options and buy long-dated options.
b. Buy short-dated options and sell long-dated options.
c. Sell short-dated options and sell long-dated options.
d. Buy short-dated options and buy long-dated options.
求高人指点。