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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?

Profit

Sell put option

Holder exercises?

Profit

Net profit

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