3) The stock is currently $10. A call option that expires in 3 days with exercise price E=$10 is selling for $0.2247 in the market. You have estimated the actual volatility of the stock to be 0.2. The risk free rate of return is r=0.12. What is the expected profit using a straddle to profit from the difference in the two volatilities? How much is that straddle worth now? Do you buy or short the straddle? 3) The stock is currently $10. A call option that expires in 3 days with exercise price E=$10 is selling for $0.2247 in the market. You have estimated the actual volatility of the stock to be 0.2. The risk free rate of return is r=0.12. What is the expected profit using a straddle to profit from the difference in the two volatilities? How much is that straddle worth now? Do you buy or short the straddle