A pharmaceutical company is awaiting FDA approval for a blockbuster drug with a very large profit potential. The market believes, and you concur, there is a 50-50 chance it will be approved/disapproved, but your contact at the FDA indicates they are going to defer judgement. You should consider:

a) a straddle

b) a slightly out-of-the-money long call

c) a slightly out-of-the-money long put

c) butterfly spread