• Long currency strangle
  • Call option premium = $0.03/, Put option premium = $0.02/
  • Call option strike price = $1.20/, Put option strike price = $1.10/
  • Fill the table (there are 30 empty cells) (1.2 points)
  • Draw each graph for call option, put option, and strangle for an option holder (0.8 points)
  • Mark two BE points and two strike prices on the strangle graph (0.8 points)
  • On the graph, please mark call premium, put premium, and the total premium (0.6 points)
  • How much is the maximum losses with the strangle strategy? (0.2 points)

Spot exchange rate		$0.00/	$1.00/	$1.05/	$1.20/	$1.25/	$1.30/
Long call	Does an option holder exercise? (N/Y)
	Profit per unit (for an option holder)
Long put	Does an option holder exercise? (N/Y)
	Profit per unit (for an option holder)
Net profit (for an option holder)

Net profit per unit

Exchange rates: $/