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Replicate the payoff diagram for the following position: long one 40-strike put, short one 35-strike put, short one 25-strike put, and long one 20-strike put
Replicate the payoff diagram for the following position: long one 40-strike put, short one 35-strike put, short one 25-strike put, and long one 20-strike put using a portfolio of butterfly positions with 5-point spacing (e.g., a butterfly centered on 25 would involve options with strikes of 20, 25, and 30, while a butterfly centered on 35 would involve options with strikes of 30, 35, and 40). Indicate the number and center strike prices for the butterfly trades needed for this replication.
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