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IBM shares currently sell for $154. Some of its 3-month European options, at varying strike prices, currently sell for the following premiums. Description Maturity Strike

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IBM shares currently sell for $154. Some of its 3-month European options, at varying strike prices, currently sell for the following premiums. Description Maturity Strike Premium IBM 135 call 3 months 135 18.65 IBM 155 call 3 months 155 4.10 IBM 170 call 3 months 170 0.44 1.38 IBM 135 put 3 months 135 IBM 155 put 3 months 155 IBM 170 put 3 months 170 6.60 18.74 IBM just announced a major acquisition and will report earnings in 3-months. As a result you think IBM's share price will be very volatile over the next 3-months and decide to set up a straddle using 155 strike options to take advantage. What would be your closest break-even stock price(s) from the straddle (per share of IBM)? O 130 144 O 150 155 160

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