Question 4: You are decided to do a straddle strategy on Pfizer stock due to the attention that the stock still attracts around treatment alternatives. The stock is currently at 49$. You buy at the 1-month call and put options with a strike of 52$. The call premium is 0.29$ and the put premium is 3.47$.

a. What is the most you can lose in this strategy?

b. What will be your profit if the stock is selling at 57$ at expiration?

c. At what stock prices will you break even (in terms of profit) in a straddle?