Assume a Long Straddle is being created using the following values:

Current stock price: $50

Any put or call is at a strike price equal to the current stock price

Standard deviation of the stock's returns: 45%

Time frame of hedge: 2 years

T-Bill interest rate: 2.0%

Total amount invested in stock and options purchases: as much as possible up to $10,000

What is the total profit if this hedge is bought, and the stock price goes up to $53?

What is the total profit if this hedge is bought, and the stock price goes up to $53?

Group of answer choices

A. - $43,048

B. - $9,810

C. - $8,610

D. $1,200

Please show work in excel if possible?