30. Butterfly Spread with Puts (CFA5) You can also create a butterfly spread using puts by buying a put at K1, buying a put at K3, and selling two puts at K2. All of the puts are on the same stock and have the same expiration date, and the assumption that K2 = ½(K1 + K3) still holds. Puts on a stock with strike prices of $35, $40, and $45 are available for $.90, $2.35, and $5.10, respectively.

Draw a graph showing the payoff and profit for a butterfly spread using these options.