Domestic Payoff: Straddle Formula: Hd = max (Sd - Xd, 0) + max (Xd - Sd, 0) Xd = 1.1

Foreign Payoff: Straddle

As was the case with the Butterfly Spread, here the payoffs of both the domestic and its financially equivalent foreign payoff look very similar. And again, the slopes of the payoffs are slightly different. Still, we can say that the financially equivalent foreign payoff of a Straddle is a Straddle as well.