Please answer B$-3$ and C

The common stock of the C$.$A$.$L$.$L$.$ Corporation has been trading in a narrow range around $$145$ per share for months, and you believe

it is going to stay in that range for the next $6$ months. The price of a $6-$month put option with an exercise price of $$145$ is $$8\mathrm{.}19.$

a$.$ If the risk$-$free interest rate is $9\%$ per year, what must be the price of a $6-$month call option on C$.$A$.$L$.$L$.$ stock at an exercise price of

$$145$ if it is at the money? $($The stock pays no dividends.$)($Do not round Intermedlate calculations. Round your answer to $2$ decimal

places.$)$

Answer is complete and correct.

Price of a $6-$month call option

b$-1.$ What would be a simple options strategy using a put and a call to exploit your conviction about the stock price's future movement?

Answer is complete and correct.

Strategy

Sell a straddle

b$-2.$ What is the most money you can make on this position? $($Do not round Intermedlate calculatlons. Round your onswer to $2$

decimal places.$)$

Answer is complete and correct.

b$-3.$ How far can the stock price move in either direction before you lose money? $($Do not round Intermedlate calculatlons. Round

your answer to $2$ decimal places.$)$

Answer is not complete.

Stock price

c$.$ How can you create a position involving a put, a call, and riskless lending that would have the same payoff structure as the stock at

expiration? What is the net cost of establishing that position now? $($Enter the absolute value. Do not round Intermedlate calculatlons.

Round your answers to $2$ decimal places. Leave no cells blank $-$ be certaln to enter $"0"$ wherever required.$)$

Answer is not complete.