Question 5 1 pts The current price of a non-dividend- paying stock is $40. Over the next six months it is expected to rise to $44 or fall to $36. Assume the risk- free rate is zero. An investor buys a straddle on the stock with a strike price of $42. Which of the following hedges the position? Buy 0.25 shares for each straddle bought Short 0.25 shares for each straddle bought Buy 0.75 shares for each call option sold. Short 0.75 shares for each call option sold No need to buy or sell shares; a straddle has zero delta