A straddle is created by buying a call and buying a put with the same strike price and expiration.

In a straddle strategy, a profit can be made if $S_T > K + C$ or $S_T < K - C$, where $S_T$ is the asset price at time T, $K$ is the strike price, and $C$ is the cost of setting up the straddle.

In this case, with $K = 45$ and $C = 5$:

• Upper breakeven: $S_T > 45 + 5 = 50$
• Lower breakeven: $S_T < 45 - 5 = 40$

Therefore, a profit is made if $S_T > 50$ or if $S_T < 40$.

Note: A long straddle is created by purchasing a call and a put with the same strike price and expiration, while a short straddle is created by selling a call and a put with the same strike price and expiration.