Asset 1: Straddle Formula: H1 = max (S12 - X, 0) + max (X - S12, 0) X = 0.8

Asset 2: Straddle.

As was the case with the Butterfly Spread, the financially equivalent payoff on the opposite side of the market in the case of a Straddle looks very similar. And again, the slopes in the sides of the two payoffs are slightly different. Still, we can say that the financially equivalent payoff of a Straddle is a Straddle as well.