Question
A trader creates a long butterfly spread from options with strike prices $60, $65, and $70 by trading a total of 400 options. The options
A trader creates a long butterfly spread from options with strike prices $60, $65, and $70 by trading a total of 400 options. The options are worth $11, $14, and $18. What is the maximum net gain (after the cost of the options is taken into account)?
| $300 | ||
| $400 | ||
| $200 | ||
| $100 |
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Economics Of Money Banking And Financial Markets
Authors: Frederic Mishkin
5th Edition
0134734203, 978-0134734200
