Suppose you are given the following prices for the options on ABC stock:

Strike (in $)

15.0 2.0 1.5

17.5 2.5 1.1

20.0 3.2 0.8

a)Suppose you decide to buy a 15.0 straddle (1 long call + 1 long put with the same strike of 15.0). Please draw the payoff at maturity.

b)Over what range of underlying stock price (at maturity) will you lose money (after taking into account the price you paid for the options)?