Question: A trader creates a long butterfly spread from options with strike prices $60, $65, and $70 by trading a total of 4 100-share options. The

A trader creates a long butterfly spread from options with strike prices $60, $65, and $70 by trading a total of 4 100-share options. The options are worth $4, $8, and $15 respectively. What is the maximum net loss (after the cost of the options is taken into account)?

a.

$400

b.

$200

c.

$100

d.

$300

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