Suppose you believe that the market has underestimated the volatility of the yen-per-dollar exchange rate. You are not sure whether the dollar will rise or fall in value, only that it is likely to rise or fall by a larger amount than expected by other market participants. Consider forming a “purchased straddle” by combining a purchased dollar call and a purchased dollar put with the same exercise price K^¥/$ and expiration date. Diagram the payoff profile of this position at expiration.