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Long currency strangle Call option premium = $0.03/, Put option premium = $0.02/ Call option strike price = $1.25/, Put option strike price = $1.15/

Long currency strangle

Call option premium = $0.03/, Put option premium = $0.02/

Call option strike price = $1.25/, Put option strike price = $1.15/

Option contract size = 62,500

Draw graphs of call option, put option, and straddle

Mark BE point and Strike prices

Mark each premium

Spot exchange rate

$1.05/

$1.10/

$1.15/

$1.20/

$1.25/

$1.30/

Long call option

Exercise (N/Y)

Profit

Long put option

Exercise (N/Y)

Profit

Net profit

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