Question
A trader creates a long butterfly spread from call options with strike prices $70, $76, and $82 by trading a total of 120 options. The
A trader creates a long butterfly spread from call options with strike prices $70, $76, and $82 by trading a total of 120 options. The options are worth $11.01, $13.65, and $19.99, respectively. What is the maximum net loss (after the cost of the options is taken into account)? Note that each option is linked to 100 shares of the underlying stock.
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Machine Learning In Finance From Theory To Practice
Authors: Matthew F Dixon, Igor Halperin, Paul Bilokon
1st Edition
3030410676, 978-3030410674
