Suppose you, as a speculator, expect that the British pound will appreciate or depreciate substantially. Therefore, you long a straddle. Find out the profit or loss per contract (use the following information).

• Call option premium: $0.03/, Put option premium: $0.025/
• Strike price = $1.5/
• One option contract size: 35,000.00
• At expiration, the spot exchange rate is $1.3/

	a.	$5,075
	b.	$6,125
	c.	$6,745
	d.	$7,002