28. Consider the following scenario. A pharma company, trading at \$34.53 per share, is expecting an FDA decision in a few weeks. You decide to buy an ATM put and call. The combined cost of the position (called a "long straddle") is $1,767 per straddle. If the stock fails to get approval and it falls 58%, which of the following are true: I. Any excess IV will vanish very quickly after the news is announced. II. The trade will be profitable, even though the call will fall to be worth $.25 or less. III. The trade is a loser because IV will be ground to almost zero. IV. The trade will be profitable because the stock has increased vol which will be reflected in the option prices. V. The trade is a bust because the option theta is too high to have a profit. a. All are false. b. All are true c. I, II, and IV are true. d. I, III, and V are true. e. Only I and II are true