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Short currency straddle Call option premium = $0.05/, Put option premium = $0.05/ Strike price = $1.10/, Option contract size = 62,500 Draw graphs of
Short currency straddle
Call option premium = $0.05/, Put option premium = $0.05/
Strike price = $1.10/, 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 | $1.00/ | $1.05/ | $1.10/ | $1.15/ | $1.20/ | $1.25/ | |
Sell call option | Holder exercises? |
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Profit |
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Sell put option | Holder exercises? |
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Profit |
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Net profit |
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