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4. (20 points) You are given the following information for European put options on a stock: Strike Price Option premium 2.00 5.00 12.00 Option delta-0.

4. (20 points) You are given the following information for European put options on a stock: Strike Price Option premium 2.00 5.00 12.00 Option delta-0. 0.4 0.8 40 50 60 The price of the underlying stock is 48. A butterfly spread consists of buying 40-strike and 60-strike put options and selling two 50-strike put options. Determine the elasticity of this butterfly spread. 4. (20 points) You are given the following information for European put options on a stock: Strike Price Option premium 2.00 5.00 12.00 Option delta-0. 0.4 0.8 40 50 60 The price of the underlying stock is 48. A butterfly spread consists of buying 40-strike and 60-strike put options and selling two 50-strike put options. Determine the elasticity of this butterfly spread

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