estion 9 0/0. se the following data for a fictitiously named company OPPS to answer the question that follows: The current stock price is $23. The time to maturity Tis six months. - The continuously compounded, risk-free interest rate ris 5 percent per year. - European option prices are given in the following table: Strike Price Call Price Put Price K1 = $17.5 6.00 0.10 K2 = 20 4.00 0.50 K3 = 22.5 2.00 1.00 K4 = 25 1.00 2.50 Suppose you buy a call and a put with a strike price of $20. Then which of the following statements is INCORRECT? 1) You have set up a trade that bets on the volatility being low. 2) The maximum profit is unbounded. 3) The maximum loss is -$4.50. 4) The portfolio has zero-profits when the stock price at expiration is $15.5 and $24.5. 5) You have set up a straddle. 80 888 Fd F5 F6 DD F7 F8 FO FIO % A 3 4. 5 & 7 6 ) * 00 9 0 R