For a one-year straddle on a nondividend pay stock,you are given
(1) The straddle can be only exercised at the end of one year.
(2) The pay-off of the straddle is the absolute value of the difference between the strike price and the stock price at the exprivation date.
(3)The stock currently sells for 60.
(4)The continously compounded risk-free rate is 8%
(5)In one year ,the stock will either sell for 70 or 45
(6)The option has a strike price of 50.Calculate the current price of the straddle.