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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 butterfly spread is synthesized by going long the put with strike $55, shorting two puts with strike $60 and going long the put with strike $65. If at maturity the price of the stock is such that , then the payoff of the butterfly is given by:
A) S - 56
B) 64 - S
C) 65 - S
D) S - 55
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