Problem

Currency Strangles Refer to the previous question, but assume that the call and put opti...

Currency Strangles Refer to the previous question, but assume that the call and put option premiums are $.035 per unit and $.025 per unit, respectively. (See Appendix B in this chapter.)

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

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

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