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What would the call and put values be at each one of these prices ($.90, $1.05,...

What would the call and put values be at each one of these prices ($.90, $1.05, $1.50, $2.00) for the following problem? Reska, Inc., has constructed a long euro straddle. A call option on euros with an exercise price of $1.10 has a premium of $.02 per unit. A euro put option has a premium of $.012 per unit. Some possible euro values at option expiration are shown in the following table. Complete the worksheet and determine the net profit per unit to Reska Inc. for each possible future spot rate.

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jeff jeffy answered 1 year ago
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