The second picture is just showing the strategies that we have gone over- Im pretty sure the best option would be to use the short term straddle but dont know how to articulate it. Also, the graphs we use are just handwritten and nothing fancy.

2. Design a speculation to profit from your expectation above using option trading strategies. Elaborate your reason and graph the profit diagram. The options avail- able are listed below. Put Option Price 0.009 0.017 0.029 Strike 1.34 1.36 1.38 Call Option Price 0.028 0.016 0.008 . Long Currency Straddle: Buy an at-the-money call and put in a specific currency. The call and the put option have the same expiration date and striking price. Short Currency Straddle: Write an at-the-money call and put in a specific currency. The call and the put option have the same expiration date and striking price. Long Currency Strangle: Buy an out-of-the-money call and put in a specific currency. The call and the put option have the same expiration date and moneyness. Long Currency Strangle: Write an out-of-the-money call and put in a specific currency. The call and the put option have the same expiration date and moneyness