What is the maximum net gain after the cost of the options


A trader creates a long butterfly spread from options with strike prices $60, $65, and $70 by trading a total of 400 options. The options are worth $11, $14, and $18. What is the maximum net gain (after the cost of the options is taken into account)? Show all working in detail including the strategy, cost and payoff of the options and total payoff.

Request for Solution File

Ask an Expert for Answer!!
Business Management: What is the maximum net gain after the cost of the options
Reference No:- TGS01277793

Expected delivery within 24 Hours