am B eBook Reska, Inc., has constructed a long euro straddle. A call option on euros with an exercise price of $1.20 has a premium of $0.022 per unit. A euro put option has o premium of $0.018 per unit a. Choose the correct contingency graph for a long euro straddle. A B Net Profit per Unit Net Profit per Unit $1.100 s0040 51.100 51240 51.160 31240 $1200 O $1200 10010 D $150 Future Spot Rate Future Spot Rate D e Net Profit per Unit Net Profit per Unit 51.100 $0.040 O 1 51.100 51280 $1,100 $1.280 5:200 $1240 o $1200 51240 1 =1000 $1150 Future Spot Rate Future Spot Rate The correct graph is -Select- !. b. Choose the correct contingency graph for a short euro straddle. 39 OO Oo A 30 Net Profit per Unit B Net Profit per Unit 31 51760 50.040 34 51.100 O $1200 31.60 31200 51200 11240 1 85. O $1200 51240 36. = 99090 37. 31160 Future Spot Rate Future Spot Rate 29. 30 D Net Profit per Unit Net Profit per Unit 12 51.100 SODIO H 51100 51240 11100 51240 3 $1200 51200 36 59.00 0 0 51.160 9 Future Spot Rate Future Spot Rate 0 The correct graph is Select 1 1