Question 2 Assuming a no-arbitrage environment, you are given the following premiums for European options on a stock. The current stock price is $50. Strike 45 50 55 Put Call 1.87 7.54 3.79 4.53 6.84 2.65 Which of the following are valid butterfly spreads and the correct premium you would pay or receive for the strategy I 1 long put 45, 2 short puts 50, 1 long put 55. Receive 1.13 II. 1 long call 45, 2 short calls 50, i long call 55. Receive 1.13 III. 1 long put 45, 1 short put 50, 1 short call 50, 1 long call 55. Pay 3.80 Question 2 Assuming a no-arbitrage environment, you are given the following premiums for European options on a stock. The current stock price is $50. Strike 45 50 55 Put Call 1.87 7.54 3.79 4.53 6.84 2.65 Which of the following are valid butterfly spreads and the correct premium you would pay or receive for the strategy I 1 long put 45, 2 short puts 50, 1 long put 55. Receive 1.13 II. 1 long call 45, 2 short calls 50, i long call 55. Receive 1.13 III. 1 long put 45, 1 short put 50, 1 short call 50, 1 long call 55. Pay 3.80