Question: A stock price is currently $23. A reverse (i.e short) butterfly spread is created from options with strike prices of $20, $25, and $30.

A stock price is currently $23. A reverse (i.e short) butterfly spread

A stock price is currently $23. A reverse (i.e short) butterfly spread is created from options with strike prices of $20, $25, and $30. Which of the following is true? A. B. C. D. The gain when the stock price is greater that $30 is less than the gain when the stock price is less than $20 The gain when the stock price is greater that $30 is greater than the gain when the stock price is less than $20 The gain when the stock price is greater that $30 is the same as the gain when the stock price is less than $20 It is incorrect to assume that there is always a gain when the stock price is greater than $30 or less than $20

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