I need step by step explanation on how the answer in bold were gotten. The following prices are available for call and put options on a stock priced at S50. 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. Use this information to answer questions 16 through 20. Assume that each transaction consists of one contract (for 100 shares) unless otherwise indicated. Answer questions 16 through 17 about a long straddle constructed using the June 50 options. 16. Suppose the investor adds a call to the long straddle, a transaction known as a strap. What will this do to the breakeven stock prices? a. lower both the upside and downside breakevens b. raise both the upside and downside breakevens c. raise the upside and lower the downside breakevens d. lower the upside and raise the downside breakevens e. none of the above 17. Suppose a put is added to a straddle. This overall transaction is called a strip. Determine the profit at expiration on a strip if the stock price at expiration is S36. a. -$129 b. $1,416 c. $429 d. $1,384 e. none of the above Answer question 20 about a long box spread using the June 50 and 55 options. 20. What is the net present value of the box spread? a. $9.84 b. $5.00 c. $16.00 d. $1.84 e. none of the above