The common stock of the P.U.T.T. 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 three months. You do not know whether it will go up or down, however. The current price of the stock is $100 per share, and the price of a 3-month call option at an exercise price of $100 is $10. a. If the risk-free interest rate is 10% per year, what must be the price of a 3-month put option on P.U.T.T. stock at an exercise price of $100? (The stock pays no dividends.) Hint: You need to use put-call parity here(Do not round intermediate calculations. Round your answer to 2 decimal places.) Put-call parity b. What would be a simple options strategy to exploit your conviction about the stock price's future movements? How far would it have to move in either direction for you to make a profit on your initial investment?Hint: The answer here is just the cost of setting up the straddle. I.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 final answer to 2 decimal places.) Total cost of the straddle