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Three-month European put options with strike prices of $50, $55 and $60 cost $2, $4 and $7, respectively. Assume a zero interest rate. For what
Three-month European put options with strike prices of $50, $55 and $60 cost $2, $4 and $7, respectively. Assume a zero interest rate. For what two values of the stock price in three months does the holder of the butterfly spread break even with a profit of zero?
Give your answer for the lower break even price here.
Answer is $51 please show work on how to get that and why
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