Question: Long currency strangle Call option premium = $0.03/, Put option premium = $0.02/ Call option strike price = $1.25/, Put option strike price = $1.15/

  • Long currency strangle
    • Call option premium = $0.03/, Put option premium = $0.02/
    • Call option strike price = $1.25/, Put option strike price = $1.15/
    • Option contract size = 62,500
    • Draw graphs of call option, put option, and straddle
    • Mark BE point and Strike prices
    • Mark each premium

Spot exchange rate

$1.05/

$1.10/

$1.15/

$1.20/

$1.25/

$1.30/

Long call option

Exercise (N/Y)

Holders net profit per unit

Long put option

Exercise (N/Y)

Holders net profit per unit

Net profit

Please Graph As Well

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!