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using python answer following Q2. Assume that you have a list of stock prices ranging from 30 to 80. Consider 3-month put options with strike
using python answer following Q2. Assume that you have a list of stock prices ranging from 30 to 80. Consider 3-month put options with strike prices of K1= $50,K2=$55, and K3=$60, cost p1=$2,p2=$4 and p3= \$7. Construct a butterfly spread: Buy p1 and p3 and short 2 put options p 2. Show the following: 1. Chart showing the profit/loss for long p1. 2. Chart showing the profit/loss for long p3. 3. Chart showing the profit loss for short 2 put options p2 4. Chart showing a combination of long p1 (yellow), long p3 (blue), short 2 put options p2 (green) and the butterfly spread (red) Q2. Assume that you have a list of stock prices ranging from 30 to 80. Consider 3-month put options with strike prices of K1= $50,K2=$55, and K3=$60, cost p1=$2,p2=$4 and p3= \$7. Construct a butterfly spread: Buy p1 and p3 and short 2 put options p 2. Show the following: 1. Chart showing the profit/loss for long p1. 2. Chart showing the profit/loss for long p3. 3. Chart showing the profit loss for short 2 put options p2 4. Chart showing a combination of long p1 (yellow), long p3 (blue), short 2 put options p2 (green) and the butterfly spread (red)
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