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TONTOwing pnces are avamadre Tor cairanu put options on a Stock price risk-free rate is...

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TONTOwing pnces are avamadre Tor cairanu put options on a Stock price risk-free rate is 6 percent and the volatility is 0.35. The March options h s remaining and the June options have 180 days remaining. The Black-Sc del was used to obtain the prices. Assume that each transaction consists ntract (for 100 shares). Calls Puts trike March June March June -5 6.84 8.41 1.18 2.09 50 3.82 5.58 3.08 4.13 55 1.89 3.54 6.08 6.93 Suppose an investor expects the stock price to remain at about $50 and decides to execute a butterfly spread using the June calls. What will be the cost of the butterfly spread? $79 $1.195 5637 o

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