Construct a contingency graph for a long pound straddle

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Currency straddles. Refer to the previous question, but assume that the call and put option premiums are £0.035 per unit and £0.025 per unit, respectively. (See Appendix 5B in this chapter.)

a. Construct a contingency graph for a long pound straddle.

b. Construct a contingency graph for a short pound straddle.

Reference no: EM13936136

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