Given the writer of a straddle with the following information:Please answer all 7 steps.

Sell 5 IBM 120 August calls @3

Sell 5 IBM 120 August puts @2

1. Calculate the B.E points:
2. What is the strike price? _____________
3. What is the total premium paid by holder of the long position ____________
4. What is the maximum amount that the investor in the short position can make? _________
5. Which organization serves to facilitate the trading of options?
6. Why are straddles used as an investment tool?
7. What are the key risks when an investor decides to invest in options?