Question
For stock 3M, Current Stock Price = 40, option prices is as follows, Current Option Price is = 7.0 ( Call 35) = 4.0 (
- For stock 3M, Current Stock Price = 40, option prices is as follows,
Current Option Price is = 7.0 ( Call 35)
= 4.0 ( Call 40)
= 2.0 ( Call 45)
Please construct a table showing the "Butterfly Strategy" assuming the following stock prices when the call option expires: $20, 25, 30, 35, 40, 45, 50, 55, 60, 65, 70.
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Financial Management For Decision Makers
Authors: Peter Atrill
7th Edition
129201606X, 978-1292016061
