An asymmetric butterfly spread has the following payoff diagram: 12 0 80 84 80 84 90...
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An asymmetric butterfly spread has the following payoff diagram: 12 0 80 84 80 84 90 90 This position was created using calls that are priced as follows: Strike Premium $4 $2 $0.50 Ignoring commissions and bid-ask spreads, what was the cost to establish this asymmetric butterfly spread? Answer: $3. Show your reasoning. An asymmetric butterfly spread has the following payoff diagram: 12 0 80 84 80 84 90 90 This position was created using calls that are priced as follows: Strike Premium $4 $2 $0.50 Ignoring commissions and bid-ask spreads, what was the cost to establish this asymmetric butterfly spread? Answer: $3. Show your reasoning.
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