Question: Using the data below, construct the series of potential Call butterfly spreads that are possible based on strike prices that are exactly $5 apart. Since
Using the data below, construct the series of potential Call butterfly spreads that are possible based on strike prices that are exactly $5 apart. Since these are American options, if you had to choose between these Call butterfly spreads, which would you choose to immediately implement by buying and exercising the options right away? What would be the total profit from immediately implementing your chosen spreads?
| Calls | Puts | |||||||||
| Last Price | Change | Volume | Strike | Last Price | Change | Volume | ||||
| 41.6 | 0 | 1 | 50 | 0.05 | 0 | - | ||||
| 25.5 | 0 | 33 | 70 | 0.37 | -0.03 | 57 | ||||
| 14.85 | -0.9 | 2 | 75 | 0.73 | 0.02 | 64 | ||||
| 10.88 | 0.33 | 1 | 80 | 1.38 | -0.05 | 88 | ||||
| 7.34 | -0.2 | 1,213 | 85 | 2.55 | 0 | 1,324 | ||||
| 4.25 | -0.05 | 315 | 90 | 4.47 | 0.17 | 340 | ||||
| 2.15 | 0 | 291 | 95 | 7.05 | -0.6 | 1 | ||||
| 0.95 | 0.03 | 1,345 | 100 | 11.05 | -0.62 | 77 | ||||
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