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You form a long straddle by buying a call with a premium of C = $4, and buying a put with a premium of P
You form a long straddle by buying a call with a premium of C = $4, and buying a put with a premium of P = $3. Both options have an exercise price of X = $28, both mature in 2 months, and both have the same underlying asset. Find the profit of this straddle when the price of the underlying asset is S = $54. Do NOT use the $ symbol in your answer; just write a numerical value.
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