Hold the position until expiration determine the profits


Suppose that you are expecting the stock price to move substantially over the next three months. You are considering a butterfly spread. Construct an appropriate butterfly spread using the October 160, 165, and 170 calls.

Hold the position until expiration. Determine the profits and graph the results. Identify the two breakeven stock prices and the maximum and minimum profits.

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Financial Management: Hold the position until expiration determine the profits
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