Question
A stock is currently priced at $130. The following options, with expiration in 4 months, are available: K c p 120 12.80 1.85 125 8.65
A stock is currently priced at $130. The following options, with expiration in 4 months, are available:
| K | c | p |
| 120 | 12.80 | 1.85 |
| 125 | 8.65 | 3.11 |
| 130 | 5.05 | 4.85 |
| 135 | 2.61 | 7.55 |
| 140 | 1.10 | 11 |
What is the initial investment required to create a butterfly spread using call options with strike prices of 125, 130, and 135?
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Real Estate Finance
Authors: Wolfgang Breuer, Claudia Nadler
2012th Edition
3834934496, 978-3834934499
