You wish to enter a Butterfly Position Using Put Options. This will require three individual option positions. The following put options are to be used.

Option 1:Strike = $40, Option Price = $1.76

Option 2:Strike = $45, Option Price = $3.30

Option 3:Strike = $50, Option Price = $6.10

Which options are purchased and which are sold? How many contracts purchased or sold for each position?

What is the maximum gain that can be earned from entering this position?

Over what range of underlying asset prices does this maximum gain occur?

What is the maximum loss that can be experienced from entering this position?

Over what range of underlying asset prices does this maximum loss occur?