32 Currency strangles. For the following options available on Australian dollars (A$), construct a worksheet and contingency

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32 Currency strangles. For the following options available on Australian dollars (A$), construct a worksheet and contingency graph for a long strangle. Locate the breakeven points for this strangle. (See Appendix B in this chapter.)

l Put option strike price ¼ £0.42.

l Call option strike price ¼ £0.40.

l Put option premium ¼ £0.01 per unit.

l Call option premium ¼ £0.02 per unit.

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Exploring Economics

ISBN: 9780324395464

4th Edition

Authors: Robert L. Sexton

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