Consider a stock worth $49. A call with an exercise price of $50 costs $6.25 and a put with an exercise price of $50 costs $5.875. An investor buys a straddle.

A. Determine the value at expiration and the profit under the following outcomes:

i. The price of the stock at expiration is $61.

ii. The price of the stock at expiration is $37.

B. Determine the following:

i. the maximum profit.

ii. the maximum loss.

C. Determine the breakeven stock price at expiration.