Suppose I trade an option and I wish to hedge that option for delta and vega. Another option is available to trade.
To complete the hedge I would
A . trade the underlying in such a way as to make the portfolio delta and vega neutral.
B . trade the other option in such a way as to make the portfolio delta and vega neutral.
C . trade the other option in such a way as to make the portfolio vega neutral, and then trade the underlying in such a way as to make the portfolio delta neutral.
D . trade the underlying in such a way as to make the portfolio delta neutral, and then trade the other option in such a way as to make the portfolio vega neutral.
Answer: C
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