apters 20 21 The common stock of the PUTT Corporation has been trading in a natrow price range for the past month, and you are convinced it is going to break far out of that range in the next 3 months You do not know whether it will go up or down, however. The current price of the stock is $100 per share and the price of a 3-month call option at an exercise price of $100 is $5.60 a. If the risk free interest rate is 10% per year, what must be the price of a 3-month put option on PUTT stock at an exercise price of $100% (The stock pays no dividends ) (Do not round intermediate calculations. Round your answer to 2 decimal places.) ded Put call party b. What would be a simple options strategy to exploit your conviction about the stock price's future movements. How far would it have to move in either direction for you to make a profit on your initial investment? ind your intermediate calculations and final answer to 2 decimal places.) Total cost of the straddle