Question: A stock has equal probability to go up or down in value by 15% in each of the next two years. The current stock price

A stock has equal probability to go up or down in value by 15% in each of the next two years. The current stock price is 60 and the risk free rate is 7%. What ia the cost of implementing the straddle strategy at the start of the first year using options with the strike price of 51?

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