Tommy Brown is an equity analyst focusing on healthcare and biotech industries. Recently, he believes that the share price of TTH, a biotech firm, will be significantly influences by the outcome of US food and drug administration approval on its new drugs. If the application is successful, Tommy believes that TTHs share price will would increase sharply. If the application is unsuccessful, he believes that TTHs share price would fall significantly. Tommy wants to profit from his beliefs by implementing a straddle. He collects the following information

Current share price of TTH $10.60

Risk free rate 1.3%

Price of 30-day call option with strike price 11.50 is $1.2

Price of 30-day put option with strike price 11.50 is $1.5

A Calculate the profit per share on the straddle if TTHs application is successful and TTHs share price doubles.

B Calculate two share prices of TTH at which breakeven for straddle occurs