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Read the sign on either side
At strike 100, a long forward settlement is −20 when S=80 and +20 when S=120. A same-strike long call plus long put pays 20 in both scenarios. The absolute-value payoff changes the downside sign.
Keep initiation terms in the comparison
The original straddle costs call 6 plus put 4 = 10. Its simple profit is therefore 10 at either S=80 or S=120 and −10 at S=100. A forward’s initial and settlement terms need their own supplied record, rather than borrowing those premiums.
| S | Long forward settlement | Straddle payoff | Straddle simple profit |
|---|---|---|---|
| 80 | −20 | 20 | 10 |
| 100 | 0 | 0 | −10 |
| 120 | 20 | 20 | 10 |
Do not confuse addition and subtraction
Long call minus short-put holder amount gives S−K, while long call plus long put gives |S−K|. Position signs determine which exposure is constructed even when strike and expiry are identical.
Keep the result separate from a forecast
The table supplies scenarios, not their likelihoods. No pricing model or strategy recommendation follows merely from comparing the terminal functions.