Question
A trader creates a reverse (i.e short) butterfly spread from call options with strike prices $100, $110, and $120 by trading a total of 400
A trader creates a reverse (i.e short) butterfly spread from call options with strike prices $100, $110, and $120 by trading a total of 400 options. The options are worth $7.8, $4.0, and $2.8. What is the maximum net gain?
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Fundamentals of Investment Management
Authors: Geoffrey Hirt, Stanley Block
10th edition
0078034620, 978-0078034626
