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. . . 2. Currency Strangles The following information currently available for Canadian dollar (C$) options Put option exercise price=$.75 Put option premium=$.014 per unit

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. . . 2. Currency Strangles The following information currently available for Canadian dollar (C$) options Put option exercise price=$.75 Put option premium=$.014 per unit Call option exercise price=$.76 Call option premium= $.01 per unit One option contract represents C$50,000 a. What is the maximum possible gain for a purchaser of the strangle using these options, assume the exchange rate ranges from $0.5/C$ to $2/C$ b. What is the maximum possible loss for a writer of the strangle? c. Locate the break-even point (s) of the strangle d. Please use Excel to graph the profit curve for the strangle buyer and strangle writer

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