Question: A trader creates a long butterfly spread from call options with strike prices $70, $76, and $82 by trading a total of 80 options. The
A trader creates a long butterfly spread from call options with strike prices $70, $76, and $82 by trading a total of 80 options. The options are worth $10.40, $14.00, and $19.00, respectively. What is the maximum net gain (after the cost of the options is taken into account)? Note that each option is linked to 100 shares of the underlying stock.
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