You create an asymmetric butterfly using put options. You purchase 4 options with a strike of...

 

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You create an asymmetric butterfly using put options. You purchase 4 options with a strike of 40 and take additional positions in puts with strikes of 60 and 65. What is the maximum payoff you could receive from the asymmetric butterfly? You create an asymmetric butterfly using put options. You purchase 4 options with a strike of 40 and take additional positions in puts with strikes of 60 and 65. What is the maximum payoff you could receive from the asymmetric butterfly?

Answer rating: 100% (QA)

To determine the maximum payoff from the asymmetric butterfly using put options we need to consider the payoff at different stock price levels and cal... View the full answer