Question: Question #3 (10 marks) Three put options on a stock have the same expiration date and strike prices of $55, $60, and $65. The market

Question #3 (10 marks) Three put options on a stock have the same expiration date and strike prices of $55, $60, and $65. The market prices are $4, $5, and $9, respectively. (a) Explain how a butterfly spread can be created. (2 marks) (b) Construct a table showing the profit from the strategy. (6 marks) (c) For what range of stock prices would the butterfly spread lead to a loss? (2 marks)

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