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. What is the value of the Call Option? What is the value of the Put Option? What are the two Breakeven Points for the Straddle Option Strategy? Value of Call Option =$2.25 (A) Value of Put Option =$1.00 2 Breakeven Points for the Straddle Option Strategy =$116.69 upper breakeven $103.31 lower breakeven Value of Call Option =$2.00 B Value of Put Option =$0.00 2 Breakeven Points for the Straddle Option Strategy =$161.69 upper breakeven $130.31 lower breakeven Value of Call Option =$4.00 Value of Put Option =$0.00 2 Breakeven Points for the Straddle Option Strategy =$196.69 upper breakeven $133.31 lower breakeven Value of Call Option =$0.00 D) Value of Put Option =$2.00 2 Breakeven Points for the Straddle Option Strategy =$116.69 upper breakeven $130.31 lower breakeven 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