$4.$ Suppose you just shorted a share of stock at the current price of $$100$ and further suppose you also purchased an at$-$the$-$money long, European straddle.

a$.$ What is your view on the direction of the underlying stock assuming you would like to make a profit? What is your combined position equivalent to$?$

b$.$ Does volatility affect the combined value of your portfolio, and if so$,$ how?