QUESTION 5 Consider a four-period binomial tree model with the following infomration of the stocks: stock price $50, up factor - 1.238, down factor 0.795, risk-free rate = 0.05, We just bought one share of the stock and we also write a covered call at the strike price of $60 that matures in four periods. What is the probability that, at maturity, we achieve the maximum profit based on the risk-neutral probability? (consider where the stock price should be at for a stock + covered call to achieve the highest profit) 32.38% 10.98% 43.35% Cannot be determined QUESTION 6 Suppose we are given the following information on call and put options on a stock: S = 60. X 60. 396, T = 0.5, 20%, and the stock doesn't pay any dividend. Calculate the deita of a shortstraddle (short both the call and the put option) using the above two options based on BSM model 0.099 0.550 -0.450 -0.099