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An investor creates a butterfly spread by trading 9 - month call options with strike prices of $ 1 1 5 , $ 1 2
An investor creates a butterfly spread by trading month call options with strike prices of $ $ and $ The prices of the options are $ $ and $ respectively.
Note: Total payoff does not include initial investment
a What is the initial investment?
b What is the total payoff when the stock price in months is
c What is the total payoff when the stock price in months is
d What is the total payoff when the stock price in months is
e What is the total payoff when the stock price in months is
f What is the total payoff when the stock price in months is
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