An option portfolio exhibits high unfavorable sensitivity to increases in implied volatility and while experiencing significant daily losses with the passage of time. Which strategy would the trader most likely employ to hedge his portfolio?
　　A. Sell short dated options and buy long dated options
　　B. Buy short dated options and sell long dated options
　　C. Sell short dated options and sell long dated options
　　D. Buy short dated options and buy long dated options
　　Answer:A
　　Such a portfolio is short vega (volatility) and short theta (time). We need to implement a hedge that is delta-neutral and involves buying and selling options with different maturities. Long positions in short-dated options have high negative theta and low positive vega. Hedging can be achieved by selling short-term options and buying long-term options.