The current price of a non-dividend paying stock is 40 and the con- tinuously compounded risk-free interest rate is 7%. The following table shows three-year put option premiums on the stock of various exercise prices: Exercise Price Put Premium 35 0.44 40 1.99 45 5.08 Let Sg be the price of the stock three years from now. Determine the range of values of S3 for which a 35-45 long bull spread outperforms a 40-strike long straddle, both of which are on the stock and expire in three years. The current price of a non-dividend paying stock is 40 and the con- tinuously compounded risk-free interest rate is 7%. The following table shows three-year put option premiums on the stock of various exercise prices: Exercise Price Put Premium 35 0.44 40 1.99 45 5.08 Let Sg be the price of the stock three years from now. Determine the range of values of S3 for which a 35-45 long bull spread outperforms a 40-strike long straddle, both of which are on the stock and expire in three years