(a) A call option with a strike price of $50 costs $5. A put option with the same strike price and expiration date costs $3. Find the profit from a long straddle on these two options, for all possible values of the underlying stock at maturity time. For what range of stock prices would the straddle lead to a loss? [7] (b) A portfolio of put and call options on the same underlying stock and same maturity time T, gives the following payoff at time T: |ST 25), where St is the price of the stock at time T. Identify the number of put and call options used in the portfolio, and their strike prices. [4] (a) A call option with a strike price of $50 costs $5. A put option with the same strike price and expiration date costs $3. Find the profit from a long straddle on these two options, for all possible values of the underlying stock at maturity time. For what range of stock prices would the straddle lead to a loss? [7] (b) A portfolio of put and call options on the same underlying stock and same maturity time T, gives the following payoff at time T: |ST 25), where St is the price of the stock at time T. Identify the number of put and call options used in the portfolio, and their strike prices. [4]