A stock is trading at INR 1,240 on October 1. Call options and put options with different exercise dates and exercise prices are available, as shown in the following Table.

Exercise date	Exercise Price (INR)	Call Price (INR)	Put Price (INR)
November 27	1,300	80	110
November 27	1,250	145	50
November 27	1,350	20	175
December 26	1,300	110	140
December 26	1,250	180	85
December 26	1,350	45	210

The stock price on November 27 is INR 1,280 and on that December 26 is INR 1,340. On Novemebr 27, a December 1,300 call option is priced at INR 60, a December 1,250 call is priced at INR 110, and a December 1,350 call is priced at INR 15. A December 1,300 put option is priced at INR 70, a December 1,250 put is priced at INR 40, and a December 1,350 call is priced at INR 120.

1. What would be the gain or loss if you enter into a butterfly spread using call options with the exercise date of November 27?
2. What would be the gain or loss if you enter into a butterfly spread using put options with the exercise date of December 26?

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1 The butterfly spread using call options with the exercise date of November 27 would result in a lo... View the full answer