Question: . Graphing Trading Strategies: This problem asks you to graph profit diagrams for several trading strategies. Compute the profit of the strategy at maturity with
. Graphing Trading Strategies: This problem asks you to graph profit diagrams for several trading strategies. Compute the profit of the strategy at maturity with respect to different realizations of the stock price in the future and plot the profit diagram (stock price on x-axis; profit on y-axis) of the strategy.
d. Buying a butterfly spread with calls: Buy a call with an exercise price of $35 and a price of $6.20. Sell two calls with an exercise price of $40 and a price of $4.50. Finally, buy one call with an exercise price of $45 and a price of $3.75.
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