Neither of the statements provided by the hedge fund manager about the straddle trading strategy are incorrect.

Statement I correctly explains that in a straddle combination options trading strategy, an investor purchases European call and put options with the same strike prices and expiration dates. This is a common strategy used in options trading, particularly when the investor believes that the price of the underlying asset will move significantly, but is unsure of the direction of the movement. By purchasing both a call and a put option, the investor can profit regardless of whether the price of the asset increases or decreases, as long as the price movement is significant enough to cover the cost of the options.

Statement II is also correct. The straddle trading strategy is indeed used when a large price movement is expected, but the direction of the movement is uncertain. This is because the strategy involves buying both a call option (which profits if the price increases) and a put option (which profits if the price decreases). Therefore, as long as the price of the underlying asset moves significantly in either direction, the investor can make a profit.

Choice A is incorrect. Statement I is correct as it accurately describes the straddle options trading strategy. In this strategy, an investor purchases a call and put option with the same strike price and expiration date. This allows the investor to profit from a significant move in either direction of the underlying asset's price.

Choice B is incorrect. Statement II correctly explains when a straddle trading strategy might be employed. Investors typically use this strategy when they anticipate a significant shift in stock price but are uncertain about its direction.

Choice C is incorrect. As explained above, both statements I and II accurately describe aspects of the straddle options trading strategy, so neither statement is wrong.