You wish to construct a short butterfly using the following options. Draw the contingency graph and fully...

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Finance

You wish to construct a shortbutterfly using the following options. Draw the contingency graphand fully label the graph. (You must label the corresponding dollarvalues for the max gain, max loss, and the spot rates forbreak-even point(s), and all kinks)

      The following are contractcharacteristics of various options:

      A:Put option with a strike price of $0.75 and a premium of $0.04

      B:Put option with a strike price of $0.82 and a premium of $0.08

      

      C:Put option with a strike price of $0.89 and a premium of $0.15

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You wish to construct a shortbutterfly using the following options. Draw the contingency graphand fully label the graph. (You must label the corresponding dollarvalues for the max gain, max loss, and the spot rates forbreak-even point(s), and all kinks)      The following are contractcharacteristics of various options:      A:Put option with a strike price of $0.75 and a premium of $0.04      B:Put option with a strike price of $0.82 and a premium of $0.08            C:Put option with a strike price of $0.89 and a premium of $0.15

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