Verify that the butterfly spread in Figure 3 14 can be
Verify that the butterfly spread in Figure 3.14 can be duplicated by the following transactions (use the option prices in Table 3.4):
a. Buy 35 call, sell two 40 calls, buy 45 call.
b. Buy 35 put, sell two 40 puts, buy 45 put.
c. Buy stock, buy 35 put, sell two 40 calls, buy 45 call.
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