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The 90-, 100-, and 110-Strike Calls Are Trading at $12 −$5- \$ 5

Question 4

Multiple Choice

The 90-, 100-, and 110-strike calls are trading at $12, $5, $3, respectively. The stock price is at $100. What is the maximum net payoff on a long butterfly spread using these options?


A) −$5- \$ 5
B) $0\$ 0
C) $5\$ 5
D) $10\$ 10

Correct Answer:

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