A straddle is a position that is long both a call and a put with the same strike price. Consider such a position with a strike price of $50. The premium for the call is $3 and the premium for the put is $2. Create a table and graph the overall payoff and net profit of this position as a function of S_T, the stock price at maturity. Vary S_T from $40 to $60 in increments of $2.

What might your view be about S_T if you were to take such a position? To answer this question, assume that the current stock price is $50