Currency Straddles. Reska, Inc., has constructed a long euro straddle. A call option on euros with an exercise price of $1.10 has a premium of $.025 per unit. A euro put option has a premium of $.017 per unit. Some possible euro values at option expiration are shown in the following table. (See Appendix B in this chapter.)

a. Complete the worksheet and determine the net profit per unit to Reska, Inc., for each possible future spot rate.

b. Determine the break-even point(s) of the long straddle. What are the break-even points of a short straddle using these options?