Seagull Spread

[question removed by moderator]

Why providing the portfolio manager with unlimited participation in any rally in the base currency beyond the 1.3600 strike of the OTM call option? I think it should be limited because if the base currency beyond 1.3600 strike price, both call will be exercised. The payoff should be limited at (1.3550 strike-1.3600 strike).

The seagull spread is built with an underlying.

Look at this post:

Also, if it wasn’t built with an underlying, the value of (1.3550 strike-1.3600 strike) would be a loss, not a gain.