Answer: Sell the 1-month option and buy the 4-month option.

## Explanation To understand this question, we need to analyze the Greek sensitivities: **Gamma (Γ)**: Measures the rate of change of delta with respect to changes in the underlying asset price. Gamma is highest for at-the-money options and decreases as options move away from the money. Gamma also decreases as time to expiration decreases. **Vega (ν)**: Measures sensitivity to changes in volatility. Vega is higher for longer-dated options and decreases as expiration approaches. **Key relationships**: - 1-month option: Higher gamma, lower vega - 4-month option: Lower gamma, higher vega **Analysis of options**: - **Option C (Sell 1-month, Buy 4-month)**: - Selling the 1-month option reduces gamma (since short-term options have higher gamma) - Buying the 4-month option increases vega (since long-term options have higher vega) - This combination achieves both objectives: reducing gamma and increasing vega **Other options**: - A: Buying both increases both gamma and vega - B: Buying 1-month increases gamma, selling 4-month decreases vega - D: Selling both decreases both gamma and vega Therefore, Option C is the correct choice.

Author: LeetQuiz Editorial Team