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Old 02-17-2015, 08:13 PM
JP2012 JP2012 is offline
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Join Date: Feb 2015
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Default Long Currency Straddles and Short Currency Straddles

Currently I am taking international finance and we are going over currency option combinations. I read over these two topics (Long and Short straddles) I'm somewhat confused. How can selling these options in short term straddles give you a profit? People purchase them knowing that they will be equal to what they already bought them at, or am I not understanding correctly?
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