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Three put options on a stock have the same expiration date and strike prices of $55, $60, and $65. The market prices are $3, $5,
Three put options on a stock have the same expiration date and strike prices of $55, $60, and $65. The market prices are $3, $5, and $8, respectively. a) How would you construct a butterfly spread? b) Construct a table showing the profit/loss from the strategy. c) For what range of stock prices would the butterfly spread lead to a loss?
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