The common stock of Lucid Corporation has been trading in a narrow price range for the past a few months, and you are convinced it is going to break far out of that range in the next $1$ year. You do not know whether it will go up or down, however. The current price of the stock is $$50$ per share, and the price of a $1-$year call option at an exercise price of $$50$ is $$5$ and the put premium with the same strike price and expiration date is $$4.$

What would be a simple options strategy to exploit your conviction about the stock price$$s future movements?

What would be the payoff and profit at expiration date of your strategy?

Calculate the breakeven stock price$($s$)$ at the expiration for this strategy.

What would be your profit if the stock price increases by $15\%$ at the expiration for this strategy?