Question 14 The common stock of the Avalon Corporation has been trading in a narrow range of around $45 per share for months, and you believe it is going to move in the wild range for the next three months. The price of a three-month put option with an exercise price of $45 is $3, and a call with the same expiration date and exercise price sells for $4. How much is the profit of a long straddle strategy if the stock price increases to $53? 1.00 B 7.00 6.00 5.00 10 Points Question 15 Suppose you purchase one Texas Instruments August 70 call contract quoted at $7.00 and write one Texas Instruments August 80 call contract quoted at $5. If, at expiration, the price of a share of Texas Instruments stock is $78, what would be your dollar profit? A) 2.5 B 4.5 C 6.0 3.5