Consider 5-month options on XYZ stock (with no dividend). Contract size is 100 shares of XYZ stock. Contracts are settled in cash. Option price quotes (in $/share) are:

Strike Option Price (premium)

220 European call 30.0

240 European call 17.8

260 European call 9.4

220 European put 6.0

240 European put 14.4

260 European put 25.4

1What is the total cost, in dollars, to buy a straddle (long a call and put of the same strike) around 240, using European options (one contract per position)?

2A straddle (long a call and put of the same strike) around 240, using European options (one contract per position) is purchased.

If XYZ stock price in 5 months is $231/share, what is the dollar pro

3what call option's delta has the largest magnitude (the 220-strike European call, the 240-strike European call, or the 260-strike European call)?

4\Which put option's delta has the largest magnitude (the 220-strike European put, the 240-strike European put, or the 260-strike European put)?