Consider a European 1-year 50-strike straddle on a nondividend-paying stock. The payoff of the straddle is the absolute value of the difference between the strike price and the stock price at expiration date. The stock currently sells for $60. In one year, the stock will either sell for $45 or $70. The continuously compounded risk-free interest rate is r=8%. Calculate the current price of the straddle