240. A hedge fund manager sent a quarterly newsletter to its clients via email, which contained information on the earnings and the strategies used by the manager throughout the quarter. One of the clients inquired about the straddle combination strategy used in trading and asked for details. The manager of the fund replied to the email with following explanations of the straddle trading strategy: I. In a straddle options trading strategy, the investor buys European call and put options with same strike price and expiration II. The straddle trading strategy is used when a big movement in stock price is expected, but the direction of the movement is unknown Which of the explanatory statements is/are wrong? A. Statement I is wrong B. Statement II is wrong C. Both statements are wrong D. None of the statements are wrong