Assume the Black Scholes framework for a stock. You are given The current stock price is 40 1) The stock pays no dividends ii) The expected rate of appreciation is 16% i) The stock' s volatility is 30% The Black Scholes price of a 6-month 42-strike European call on the stock 8 3.22 vi) The continuously compounded risk free rate is 8% You just bought a 6-month straddle which pays the absolute difference between the stock price after 6 months and 42 Calculate the probability of having a positive profit after 6 months Possible Awes Less than 0.35 - At least 0.35 but less than 0.40 At least 0.40 but less than 0.45 D At least 0.45 but less than 0.50 At least 0.50