Straddle Practice Problem Consider a stock worth $\backslash (\backslash$$ $49\backslash ).$ A call with an exercise price of $\backslash (\backslash$$ $50\backslash )$ costs $\backslash (\backslash$$ $6\mathrm{.}25\backslash )$ and a put with an exercise price of $\backslash (\backslash$$ $50\backslash )$ cost $\backslash (\backslash$$ $5\mathrm{.}875\backslash ).$ An investor buys a straddle. A$.)$ Determine the value at expiration and the profit under following outcomes at maturity for stock price i$)\backslash (\backslash$$ $61\backslash )$ ii$)\backslash (\backslash$$ $37\backslash )$ B$.)$ Determine the following i$)$ The maximum profit ii$)$ The maximum loss C$.)$ Determine the breakeven stock price at expiration