An options trader has sold a large number of at-the-money (ATM) calls and puts on stocks of AT&T, which have expiration dates in 1 month's time (but with different strike prices). Explain to your risk manager what the main sources of risk are over the next week and whether it is possible to successfully hedge these risks today (using "The Greeks"), assuming you intend to hold your hedged position unchanged over the next week.
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