Go to www.nasdaq.com and select IBM in the quote section. Request the information on options (look for the Tab for the Option Chain). Access prices for calls and puts that are closest to the money. For example, if the price of IBM is $139, use options with an exercise price of $140. Use options with time to expiration of about one month and two months.

a. What are the prices for the put and call with one month time to expiration?

b. What would be the cost of a straddle using these options?

c. At expiration, what would be the break-even stock prices for the straddle?

d. What would be the percentage increase or decrease in the stock price required to break even?

e. What are the prices of the put and call with two-months time until expiration?

f. What would be the cost of a straddle using the two-month expiration? At expiration, what would be the break-even stock prices for the straddle?

g. What would be the percentage increase or decrease in the stock price required to break even?