Question: For a reverse butterfly option strategy,you short a call with X=20,buy two calls with X=30,andwrite_a call with X=40.The call prices for the different strikesare below:

For a reverse butterfly option strategy,you short a call with X=20,buy two calls with X=30,andwrite_a call with X=40.The call prices for the different strikesare below:

X=20 --> c= 14.56

X=30 --> c= 5.82

X=40 --> c= 3.41

You will break even if the stock price at expiration is at_________ or at _________. Your maximum possible gain is ___________ and your maximum possible loss is___________. [Hint: c1+c3-2*c2 = 6.33 (net premium)].

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