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12 . Sara bought a straddle on Brent with the following characteristics : exercise price = $5 premium of call = $ 1 , and

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12 . Sara bought a straddle on Brent with the following characteristics : exercise price = $5 premium of call = $ 1 , and the premium of put is $1 . 50 . Which of the following is TRUE if at this moment the price of Brent is $5.50 per share ? A . Both the call and the put are in- the - money B . The call is in - the - money and the put is out of the - money C . The call is out of the - money and the put is in- the - money D . The call is in- the - money and the put is at the - money E . Both the call and the put are out of the - money

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