# Show that the payoff given by equation (9.6) is, indeed, equal to the payoff of the butterfly spread. Also show that the butterfly spread can be created by buying a put option with a low strike price, buying another put

Show that the payoff given by equation (9.6) is, indeed, equal to the payoff of the butterfly spread. Also show that the butterfly spread can be created by buying a put option with a low strike price, buying another put option with a high strike price, and selling two put options with the strike price in the middle.

Strike Price

In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity.

Strike Price

In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity.

## This problem has been solved!

Do you need an answer to a question different from the above? Ask your question!

**Related Book For**

## Organic Chemistry

**ISBN:** 9788120307209

6th Edition

**Authors:** Robert Thornton Morrison, Robert Neilson Boyd

## Students also viewed these Organic Chemistry questions