Three put options written on the same stock and with the same maturity have strike prices of $$55,$ $$60,$ and $$65,$ respectively. The market prices of the above options are $$3,$ $$5,$ and $$8,$ respectively. What is the profit$/$loss of a butterfly spread constructed using these three options if the stock price at maturity is $$59\mathrm{.}8?$

Question $9$Answer

a$.$

$$3\mathrm{.}80$

b$.$

$$5\mathrm{.}20$

c$.$

$$4\mathrm{.}20$

d$.$

$-$$$1$

e$.$

$$4\mathrm{.}80$