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Suppose you are creating a butterfly spread using call options with 3 different strike prices. Currently, the call price with strike price of $40 is
Suppose you are creating a butterfly spread using call options with 3 different strike prices. Currently, the call price with strike price of $40 is $21.94, the call with strike price of $50 is $11.24, and the call with strike price of $60 is $6.55. What is the initial cash flow of the butterfly spread strategy? If it's a cash outflow, then answer in a negative number.
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