Question: A trader creates a long butterfly spread from options with strike prices X , Y , and Z , where X < Y < Z
A trader creates a long butterfly spread from options with strike prices X Y and Z where X Y Z and Y is exactly midway between X and Z A total of options are traded. The difference between X and Y is $ The difference in the prices of the options with strike prices of Z and Y is $ The difference in the prices of the options with strike prices of Y and X is $ What is the maximum net gain after the cost of the options is taken into account Please give your answer to the nearest dollar.
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