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Problem 2 (8 points). A trader creates a long butterfly spread from options with strike prices $60, S65, and $70 by trading a total of

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Problem 2 (8 points). A trader creates a long butterfly spread from options with strike prices $60, S65, and $70 by trading a total of 400 options. The options are worth $11, $14, and S18. a) Build a table showing the payoff and profit of this strategy. b) What is the maximum profit that the trader can earn by using this strategy

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