Look at Figure 23.9, which shows the possible future payoffs in June 2016 from a particular package of investments in Alphabet options. This package of investments is called a "butterfly" by option buffs.

a. What package of investments would provide you with this set of payoffs?

b. How much would the package have cost you in December 2015? (See Table 23.2.)

c. Would it have made sense to hold this package if you thought that the price of Alphabet stock was unlikely to change much?

FIGURE 23.9 This strategy provides a total payoff of $50 if the stock price is $750 and a payoff of zero if Alphabet's stock price in June is either (a) $700 or less or (b) $800 or more. See Problem 10.

sso! 50- $700 $750 $800 Alphabet's stock price in June Expiration date Exercise Price Call Price $86.00 S700 58.00 October 2013 750 800 35.60