16. (Convexity property of put option prices) A butterfly spread is created using the following put options:

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16. (Convexity property of put option prices) A butterfly spread is created using the following put options: The investor buys a put option with a strike price of $55 and pays $10, buys a put with a strike price of $65 and pays $5, and sells two puts with an intermediate strike price of $60.

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Principles Of Finance With Excel

ISBN: 9780190296384

3rd Edition

Authors: Simon Benninga, Tal Mofkadi

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