Question $16(5$ points$)$

Options on Advance Auto Parts are trading as follows: An April $$35$ put is trading at $$0\mathrm{.}44$ and an April $$45$ call is trading at $$0\mathrm{.}97.$ A trader goes long in one April $$35$ put and long in one April $$45$ call. What type of strategy is this?

Question $16$ options:

hedge wrapper or collar

long strangle

long straddle

calendar spread

Question $17(5$ points$)$

In April Advance Auto closes at $$40$ per share. Our trader liquidates their positions $(100$ shares each contract$).$ The total payoff is:

Question $17$ options:

$-$$$597$

$-$$$141$

$-$$$97$

$-$$$544$

Question $18(5$ points$)$

The break$-$even price for this total strategy would be:

Question $18$ options:

$$46\mathrm{.}41$

$$44\mathrm{.}03$

$$35\mathrm{.}44$

$$36\mathrm{.}41$