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You are investing in a straddle with the stike price X $110. Call premium C is $2.50 and put premium P is $2.98. If at

You are investing in a straddle with the stike price X $110. Call premium C is $2.50 and put premium P is $2.98. If at the the expiration date, stock price ST is $106,

a). what is your payoff and what is your profit (loss)?

b). What are the break-even prices for your straddle position?

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