Create a BUTTERFLY SPREAD with the following PUT OPTIONS

K	PUT PRICE
$33	$2
$40	$5
$47	$9

ANSWER THE FOLLOWING QUESTIONS TO CREATE APPROPRIATE TABLE AND GRAPH FOR BUTTEFLYSPREAD'S PAYOFF AND PROFIT, RESPECTIVELY:

1. WHAT SHOULD BE THE STRATEGY TO CREATE BUTTERFLY SPREAD
2. WOULD THE TRADER INITIALLY FACE A CASH INFLOW OR OUTFLOW? HOW MUCH PER SHARE?
3. WHAT ARE THE PAYOFF AND PROFIT TABLE?
4. WHAT ARE THE PAYOFF AND PROFIT GRAPH?
5. AT WHAT STOCK PRICE(S) WOULD THE TRADER OF THIS BUTTERFLY SPREAD EXPECT A POSITIVE PROFIT?