Question: 21. Consider the information in the previous problem. (10 pts) If you decide to enter into 10 short butterfly spread , how would it be

21. Consider the information in the previous problem. (10 pts)

If you decide to enter into 10 short butterfly spread, how would it be structured, and what would the potential profit or loss be?

What is the spreads profit-to-loss ratio?

What are the breakeven points?

How much margin (buying power) does this position require?

Ans:

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