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Draw a profit diagram (label everything: watch my video lectures to see what my expectations are) for a butterfly spread. Show any breakeven points and

  1. Draw a profit diagram (label everything: watch my video lectures to see what my expectations are) for a butterfly spread. Show any breakeven points and label the maximum gain and the maximum loss (I need the exact numbers). The current stock price is $100. What would the profit be if the ending stock price was $80? What would the profit be if the ending stock price was $160?

Exercise Prices

X = 100

X = 105

X = 110

Call Premium

14.43

11.88

10.51

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9.35

11.86

13.36

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