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Please show work on how to get an answer. I don't really understand this topic. Thanks! Long currency straddle Call option premium = $0.03/, Put

Please show work on how to get an answer. I don't really understand this topic. Thanks!

  • Long currency straddle
    • Call option premium = $0.03/, Put option premium = $0.03/
    • Strike price = $1.10/
    • Fill the table (there are 30 empty cells) (1.2 points)
    • Draw each graph for call option, put option, and straddle for an option holder (0.8 points)
    • Mark two BE points and one strike price on the straddle graph (0.6 points)
    • On the graph, please mark call premium, put premium, and the total premium (0.6 points)
    • How much is the maximum losses with the straddle strategy? (0.2 points)

Spot exchange rate

$0.00/

$1.00/

$1.04/

$1.10/

$1.16/

$1.20/

Long call option

Does an option holder exercise? (N/Y)

Profit per unit (for an option holder)

Long put option

Does an option holder exercise? (N/Y)

Profit per unit (for an option holder)

Net profit (for an option holder)

Net profit per unit

Exchange rates: $/

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