The common stock of the PU.TT. Corporation has been trading in a narrow price range for the past month, and you are convinced it is going to break far out of that range in the next 3 months. You do not know whether it will go up or down, however. The current price of the stock is $120 per share, and the price of a 3-month call option at an exercise price of $120 is $5.20 a. If the risk-free interest rate is 7% per year, what must be the price of a 3-month put option on PUTT stock at an exercise price of pays no dividends.) Hint: You need to use put-call parity here. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. A straddle would be a simple options strategy to ex ploit your conviction about the stock price's future movements. How far would it investment? Hint: The answer here is just the cost of setting up have to move in either direction for you to make a profit on your initial the straddle. L.e. sum the price of the call option and the price of the put option together, and you will have the final answer. (Round your intermediate calculations and f inal answer to 2 decimal places.) of the