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A Trader Creates a Long Butterfly Spread from Options with Strike

Question 19

Multiple Choice

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) ?


A) $100
B) $200
C) $300
D) $400

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