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Your uncle owns shares of Wal-Mart stock. He is concerned about the short-term outlook for Wal-Mart?s stock. It seems to be relatively inactive in a usually active Holiday season. It does not seem to be attracting very much attention in the press, so he expects the stock price will not change significantly over the next two months, but is unsure in which direction it will move. He hopes the price will increase, but he also does not want to su?er if the price were to fall in the short term. He wants you to devise a plan for him to capitalize if the price movement is positive but to still be protected if the price moves adversely. You think a short straddle may o?er the best downside protection, while increasing the upside potential. From the Wal-Mart option information provided, design a straddle that may best serve your uncles investment criteria. In Table 1 describe your put and call selections and in Figure 1 draw the put and call and resulting straddle.