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For the following options available on Australian dollars (A$), construct a worksheet for a long strangle. Put option strike price = $0.64. Call option strike
For the following options available on Australian dollars (A$), construct a worksheet for a long strangle.
- Put option strike price = $0.64.
- Call option strike price = $0.62.
- Put option premium = $0.02 per unit.
- Call option premium = $0.04 per unit.
Use a minus sign to enter loss values, if any. Use a minus sign to enter loss values, if any. If the answer is zero, enter "0". Round your answers to the nearest cent.
Value of Australian dollar at Option Expiration | ||||
$0.55 | $0.62 | $0.64 | $0.70 | |
Own a Call | $ | $ | $ | $ |
Own a Put | $ | $ | $ | $ |
Net | $ | $ | $ | $ |
Choose the correct contingency graph for a long pound strangle.
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