You are a trader at an options desk for an investment bank. The underlying stock of the options you trade is priced at $125.94. You want to gain long vega exposure to your position with July options and use exercise prices as close to where the stock is trading as possible so that it is close to delta-neutral.

(1) Which strategy below best describes your objectives?

buy a box

buy a straddle

buy a ratio spread

buy a collar

buy a bull call spread

(2) Which of the following positions best describes what you should do to accomplish your objective?

buy the July 130 call and sell the July 130 put

sell the July 130 call and sell the July 130 put

buy the July 120 call and buy the June 120 put

buy the July 125 call and buy the July 125 put

sell the July 125 call and sell the July 125 put