Question: please help Question 2 (20 Points) Maggie Hawthorne is a currency speculator She han noticed recently that the end has appreciated substantially against the US

 please help Question 2 (20 Points) Maggie Hawthorne is a currency

please help

Question 2 (20 Points) Maggie Hawthorne is a currency speculator She han noticed recently that the end has appreciated substantially against the US dollar. The current exchange rate of the eutsi 11.15 After reading a variety of articles on the subject, she believe that the enro will contime to fluctuate substantially in the months to come. Although most forecasters believe that the cute will depreciate against the dollar in the near future, Maggie thinks that there is also a good possibility of further appreciation. Currently, a call option on euros is available with an exercise price of $117 and a premium of $.04. A euro put option with an exercise price of $1.17 and a premium of $.03 is also available. a Graph the profit schedule of the call and put options in two separate graphs. Make sure to include all relevant information (strike, premium, etc) in your drawing, (6 points) b. Maggie decides to uses a long straddle to speculate on the euro's value (she buys both the call and the put). At option expiration, the value of the euro is $1.30. What is Maggie's total profit or loss from a long straddle position? (7 points) c Maggie decides to uses a long straddle to speculate on the euro's value (she buys both the call and the put). At option expiration, the value of the euro is $1.05. What is Maggie's total profit or loss from a long straddle position? (7 points)

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