The following prices are available for call and put options on a stock priced at $50. The risk-free rate is 6 percent and the volatility is 0.35. The March options have 90 days remaining and the June options have 180 days remaining. The Black-Scholes model was used to obtain the prices. Strike: 45, 50, 55 Call March: 6.84, 3.82, 1.89 Call June: 8.41, 5.58, 3.54 Put March: 1.18, 3.08, 6.08 Put June: 2.09, 4.13, 6.93 Assume that each transaction consists of one contract (for 100 shares) unless otherwise indicated. show your work Answer questions 12 through 17 about a long straddle constructed using the June 50 options. 12. What will the straddle cost? 13. What are the two breakeven stock prices at expiration? 14. What is the profit if the stock price at expiration is at $64.75? 15. What is the profit if the position is held for 90 days and the stock price is $55? 16. Suppose the investor adds a call to the long straddle, a transaction known as a strap. What will this do to the breakeven stock prices? 17. Suppose a put is added to a straddle. This overall transaction is called a strip. Determine the profit at expiration on a strip if the stock price at expiration is $36. show your work.