Refer to the Financial Data File for the Theta Corporation which has been uploaded into Blackboard. This information will be relevant for problems #5,#6,#7,#8,#9 Look for Week 12 Chapter 20 Options Data for Quiz Problems 5-9. Which of the following statements is the most accurate? (A) Only when the future stock price is above the top breakeven point, will the long Straddle result in a profit. (B) If the future stock price is between the two breakeven points, thelong straddle results in a profit. (C) If the future stock price is between the two breakeven points, the long straddle results in a loss. (D) If the future stock price is between the two breakeven points, the Iong straddle results in a breakeven position. 2 The common stock of the Theta Corporation has been trading in a narrow range 3 around $150 per share for months. 4 You believe that it is going to stay in a narriw band over the next 3 months. 5 The relevant option data is: \begin{tabular}{rl|r|} \hline 6 & Current Stock Price & $148.00 \\ \hline 7 Strike Price for Put Option & $146.00 \\ \hline 8 & Strike price for Call Option & $146.00 \\ \hline 9 & Cost of Put Option & $6.80 \\ \hline 10 & Cost of Call Option & $8.89 \\ \hline 11 & Risk free (rf) rate on an annual basis & 3.50% \\ \hline \end{tabular} 12 Put Option breakeven = Strike Put Cost 13 Call Option Breakeven = Strike + Call Cost 14 Put Call Parity 15P=CS+(X/(1+rf)n) 16 You plan to follow a Long Straddle Option Strategy