Question: Question (3.03 points) A trader predicts that there will be limited price movements of USD/ in the near future but does not know which direction
Question (3.03 points) A trader predicts that there will be limited price movements of USD/ in the near future but does not know which direction the price will move, so he decides to use the "short straddle forex options trading strategy to make money in the forex market. The information for the call options and put options and put available for him are given below: Call option and put option strike price = $1.171 Put option premium = $0.01 per unit Call option premium - $0.02 per unit One option contract represents 100,000 What is/are break-even point(s) (ie, the exchange rate(s)) for the straddle? . 12 The lower break-even point is $1.13/, and the higher break-even point is $1.19/. 15 The lower break-even point is $1.18/, and the higher break-even point is $1.20/ 18 The lower break-even point is $1.14/, and the higher break-even point is $1.20/. 21 The lower break-even point is $1.15/, and the higher break-even point is $1.16/
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