Suppose you are allowed to trade the following financial instruments (assume that each option contract covers one share of stock A, e.g., a call option allows you to buy one share of A at the strike price if you want):

1. Stock A which is traded at $100 now
2. The 1-year to maturity European call option on stock A with a strike price of $80;
3. The 1-year to maturity European put option on stock A with a strike price of $80;
4. The 1-year to maturity European call option on stock A with a strike price of $100;
5. The 1-year to maturity European put option on stock A with a strike price of $100;
6. The 1-year to maturity European call option on stock A with a strike price of $120;
7. The 1-year to maturity European put option on stock A with a strike price of $120;
8. The 1-year zero-coupon bond with a YTM of 5%;

If you expect no big news on stock A's earnings announcement next week, which option portfolio below should you trade?

Group of answer choices

Sell [2] and [3]

Sell [6] and [7]

Sell [4] and [5]

Buy [1] and sell [2]

Sell [4] and buy [5]