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A reverse (i.e., short) butterfly spread is created from options with strike prices of $20, $25, and $30. At the time of the creation of
A reverse (i.e., short) butterfly spread is created from options with strike prices of $20, $25, and $30. At the time of the creation of this position the option prices are $11, $5, and $2 respectively. What is the profit at the expiration date if the position was created using single standard options covering 100 shares each and the stock price at the expiration date was $33 per share?
a. | $200. | |
b. | -$300. | |
c. | -$200. | |
d. | $100. | |
e. | $300. |
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