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What are the break-even points of a short straddle

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Reference no: EM131117801

Reska, Inc. has constructed a long euro straddle. A call option on euros with an exercise price of $1.10 has a premium of $.025 per unit. A euro put option has a premium of $.017 per unit. Some possible euro values at option expiration are shown in the following table. 

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a. Complete the worksheet and determine the net profit per unit to Reska, Inc., for each possible future spot rate.

b. Determine the break-even point(s) of the long straddle. What are the break-even points of a short straddle using these options?

Reference no: EM131117801

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