The british pound currently trades for 130pound you, Ask an Expert

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The British Pound currently trades for $1.30/pound. You initiated a long straddle on the British pound, using a call option with an excercise price of $1.30 and a premium of $.015 and a put option with the same maturity and excercise price and a premium of $.015.

What is the net profit for each of the following ending spot rates?

$1.21, Profit= $1.24, Profit= $1.27, Profit= $1.30, Profit= $1.33, Profit= $1.36, Profit= $1.39, Profit=

Draw a graph of the total value and the net profit for the strategy:

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92066961

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