Print in UPPERCASE Letters) Week 9 Assignment FIANN 654 Fall 2020 Due: October 24, 2020 1. Use put-call parity to show that the cost of a butterfly spread created using European puts is identical to the cost of a butterfly spread using European calls. (Note: K - K = Ky - Ka) cikiert pits 'k, .kg -2k, =c K = 2 (kitks) tkze PL 's * 242 kilk3 + K, tkz-2x2=0 Cstja P3 + S -VT ( ! (j-zez + (k, tk 3-ZK 2) eta Pit pj 2P2 o so can take out leave This shows that ci + C3-2 ( q = P,+83-282 the cost of a butterfly spread Created by European calls the Ceat of a butterfly spreed by using European puts. 2. Assume that you have following options available to you. CCCPP and P, where K;