Keith - yup, the picture show the knife in fully open and fully closed position. You'll notice that in the closed position the stop pin (the pin on the tang above the handles) is off to the right - where normally it would be centered between the two handles. That determines where the handles will stop in their rotations.
fVf - thanks for the compliment! it wasn't the easiest to draw, but it wasn't the hardest either. Heh!