You are expecting ahugesurprise as part of Stock A's earnings announcement tomorrow. While you do not know whether the firm will release extremely positive or extremely negative news on this date, you are certain the share price will move substantially in either case. If you believe that positive and negative news is equally likely, and are allowed to trade the following financial instruments, then which should you trade given your view?

1. Stock A, which has a current market value of $100 per share

2. A European call option on Stock A with a strike price of $90 per share and maturity of one week

3. A European put option on Stock A with a strike price of $90 per share and maturity of one week

4. A European call option on Stock A with a strike price of $110 per share and maturity of one week

5. A European put option on Stock A with a strike price of $110 per share and maturity of one week

6. A zero-coupon bond with a YTM of 5% and one week to maturity

Group of answer choices

Buy (I) and short (VI)

Short (III) and short (IV)

Buy (II) and buy (IV)

Buy (III) and buy (IV)

Buy (III) and buy (V)