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A trader creates a long butterfly spread from options with strike prices $60, $65, and $70 by trading a total of 4 100-share options. The
A trader creates a long butterfly spread from options with strike prices $60, $65, and $70 by trading a total of 4 100-share options. The options are worth $4, $8, and $15 respectively. What is the maximum net loss (after the cost of the options is taken into account)?
a.
$400
b.
$200
c.
$100
d.
$300
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