6. 10 POINTS Put options on a stock are available with strike prices K1 = $30, K2 = $40 and K3 = $50 and are selling for P1 = $1, P, = $2 and Ps = $4 The expiration is 3 months. How can these options be used to create a butterfly spread? (a) Complete the tables below to show the payoff and profit for all possible values of the stock price at maturity. (6) Use a graph with the value of Sr on the horizontal axis and $ on the vertical axis, draw the payoffs and the expected profit for this strategy. Table 1 Payoffs ST 1st column 2nd column 3rd column Total ST 30 Table 2 Expected Profits ST Expected Payoff Expected profit ST 30 6. 10 POINTS Put options on a stock are available with strike prices K1 = $30, K2 = $40 and K3 = $50 and are selling for P1 = $1, P, = $2 and Ps = $4 The expiration is 3 months. How can these options be used to create a butterfly spread? (a) Complete the tables below to show the payoff and profit for all possible values of the stock price at maturity. (6) Use a graph with the value of Sr on the horizontal axis and $ on the vertical axis, draw the payoffs and the expected profit for this strategy. Table 1 Payoffs ST 1st column 2nd column 3rd column Total ST 30 Table 2 Expected Profits ST Expected Payoff Expected profit ST 30