Calls		Puts
Strike	March	June	March	June
45	6.84	8.41	1.18	2.09
50	3.82	5.58	3.08	4.13
55	1.89	3.54	6.08	6.93

The following prices are available for call and put options on a stock priced at $50. The risk-free rate is 6 percent and the volatility is 0.35. The March options have 90 days remaining and the June options have 180 days remaining. The Black-Scholes model was used to obtain the prices

1-

What will the straddle cost, using the June options: X = 50 call and X = 50 put?

2-

Determine the profit at expiration on a strip using the June 50 options: call and put with X = 50, if the stock price at expiration is $36.

3-

What will be the profit of the butterfly using the THREE June calls, if the stock price at expiration is $52.50?

4-

What is the profit of the bull spread using the March X = 45 call and X = 50 call, if the stock price at expiration is $47?