Draw a diagram of the payoff at expiry of a long straddle.Assume a strike price of $21 and premiums of $0.55 and $0.45 for the call and put options, respectively.Under what circumstances do you think that it is appropriate to implement this strategy?

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The Answer of Draw a diagram of the payoff at expiry of a long straddle.Assume a strike price of $21 and premiums of $0.55 and $0.45 for the call and put options, respectively.Under what circumstances do you think that it is appropriate to implement this strategy?

Draw a Diagram of the Payoff at Expiry of a Long