1. Suppose the effective annual interest rate is 10% and Wagner Companys stock currently trades for $62 per share. Suppose the premium for a 1-year $65-strike call option on the stock is $14.48, and the premium for a $65-strike put is $11.57. What is the profit earned on a long $65-strike straddle if Wagners stock is worth $56.55 when the options expire? (You may assume the stock pays no dividends over the next year.)