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For a long straddle there are: CALL Premium $0.035 PUT Premium $0.025 Strike price $1.50 dollars per euro Contract size (units): 31,250 euros Obtain the
For a long straddle there are:
CALL Premium $0.035
PUT Premium $0.025
Strike price $1.50 dollars per euro
Contract size (units): 31,250 euros
Obtain the profits and losses of the long straddle by obtaining the net profit of the contract strategy, when the spot is equal to 1.10, 1.15, 1.20, 1.25, 1.30 euros. Identify the equilibrium points of the strategy, that is, at what prices of the spot, you don't win or lose.
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