Question: Three put options on a stock have the same expiration date and strike prices of $55, $60, and $65. The market prices are $3, $5,

Three put options on a stock have the same expiration date

Three put options on a stock have the same expiration date and strike prices of $55, $60, and $65. The market prices are $3, $5, and $8, respectively. Explain how a butterfly spread can be created. Construct a table showing the profit and payoff from the strategy. Draw the profit and payoff diagramFor what range of stock prices would the butterfly spread lead to a loss? Table: Payoff Profit Stock Price Range S. 265 60S,

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