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Business, 30.07.2021 14:00 StephenCurry34

2. Three call options on a stock have the same expiration date and strike prices of $37, $39, and $41. The option premiums are $2, $4, and $8. a. Explain how a long butterfly spread can be created.

b. Construct a table & a diagram showing the profit from the strategy.

c. For what range of stock prices would the long butterfly spread lead to a profit/loss?

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2. Three call options on a stock have the same expiration date and strike prices of $37, $39, and $4...
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