Construct a contingency graph for a short straddle

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Reference no: EM132907819

Problem - Currency Option Contingency Graphs - The current spot rate of the Singapore dollar (S$) is $.50. The following option information is available:

Call option premium on singapore dollar (SS) = $.015

Put option premium on singapore dollar (Ss) = $.009

Call and put option strike price = $.55

One option contract represents $70,000

Required - Construct a contingency graph for a short straddle using these options.

Reference no: EM132907819

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