Problem

(See Appendix B in this chapter.) The current spot rate of the Singapore dollar (S$) is...

(See Appendix B in this chapter.) The current spot rate of the Singapore dollar (S$) is $.50. The following option information is available:

¦ Call option premium on Singapore dollar (S$) = $.015.

¦ Put option premium on Singapore dollar (S$) = $.009.

¦ Call and put option strike price = $.55.

¦ One option contract represents S$70,000.

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

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