Jeff is expecting a high volatility on AZN stock over the next year, so he decides to purchase a one-year straddle on AZN. The current price of one share of AZN is 555.00 and the continuously compounded risk-free interest rate is 3%. The one-year straddle has a strike price of 540.00. The call option has a premium of 87.90 and the put option has a premium of 68.40. Which of the following stock prices at the end of one year would result in Jeff having a positive profit? Possible Answers A 380 B 400 680 D 700 E None of the above Jeff is expecting a high volatility on AZN stock over the next year, so he decides to purchase a one-year straddle on AZN. The current price of one share of AZN is 555.00 and the continuously compounded risk-free interest rate is 3%. The one-year straddle has a strike price of 540.00. The call option has a premium of 87.90 and the put option has a premium of 68.40. If the stock price at the end of one year is less than 1,000 which of the following is closest to Jeff's maximum possible profit? Possible Answers A 260 B 300 C 340 D 380 E 420