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Question 23 An investor wants to take a butterfly spread position and following market quotes are available to him, Strike price Option price In$ Call
Question 23
An investor wants to take a butterfly spread position and following market quotes are available to him,
| Strike price | Option price | |
| In$ | Call option | Put option |
| 32 | $ 3.5 | $ 1.1 |
| 42 | $3.1 | $1.5 |
| 50 | $ 2.9 | $2.0 |
| 60 | $2.5 | $2.6 |
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Construct a butterfly spread strategy using call options if all options are of same maturity
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