1- Tom purchases a call and a put at the strike price of $24 for an Ellis Co. stock. It cost him $2.50 to buy the call and $ 3.00 to buy the put. This is clearly a long straddle strategy. That means that there are 2 possible break-even points (two possible expiration date spot prices for Ellis Co. Stock, where Tom's net profit is 0). What is the absolute difference between the expiration spot prices for these two break-even points? Provide 2 decimals

After you provide the answer, as a mental exercise, try to think about what this means in terms of the range of values that Tom expects Ellis Co. Stock will have in the near future

2- A put and a call for the same stock with the same strike price are $3 and $2.50 respectively. If the Strike price for these options is 55$, the current spot price for the stock is 50$ and the options expire in 6 months, then, what is the risk-free rate? Express as a % with 2 decimals.

(Use put-call parity)