Sorry to flood you with questions! This should be the last one, so sorry. Pls take your time... I can always come back to it.

Qn:

A trader buys an at-the-money call option with the intention of delta-hedging it to maturity. Which one of the following is likely to be most profitable over the life of the option?

1) an increase in implied volatility

2) the underlying price steadily rising over the life of the option

3) the underlying price steadily decreasing over the life of the option

4) the underlying price drifting back and forth around the strike price over the life of the option

Ans; 4

Thank you so much!