Same problem but now add the following call $($Warning your Break Evens will change!$)$

Assume that Fred Noonan purchases a put option on British pounds $($with a strike price of $$1\mathrm{.}50)$ for $$\mathrm{.}05$ per unit.

Assume that at the time of the purchase, the spot rate of the pound is $$1\mathrm{.}51$ and continually rises

to $$1\mathrm{.}62$ by the expiration date. To hedge his bet, Fred decides to construct a Long Strangle and buy a call option. The call

option has a strike price of $$1\mathrm{.}58$ and costs $$0\mathrm{.}02.$ Construct the Long Strangle and Identify the Strangle's

Break Even points

Call premium

Call profit

Put premium

Put profit

Net profit