Question 4: Straddle Analytics. You are given the following data: XYZ stock = 100.00 100-strike call = 8.00 100-strike put = 7.50 Options are three months until expiration 1 If Smith buys a straddle on XYZ stock, he is best described as expecting a: A high volatility market. B low volatility market. C average volatility market. 2 This strategy will break even at expiration stock prices of: A 92.50 and 108.50. B 92.00 and 108.00. C 84.50 and 115.50. 3 Reaching a breakeven point implies an annualized rate of return closest to: A 16%. B 31%. C 62%