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Using the following prices for 6-month European calls, explain how an investor could create a butterfly spread and what are the potential gains/losses? Strike Price
Using the following prices for 6-month European calls, explain how an investor could create a butterfly spread and what are the potential gains/losses?
Strike Price ($) | Call Price ($) |
40 | 12 |
45 | 10 |
50 | 8 |
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