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Plot the straddle and strangle payoff

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Reference no: EM131697046

Question: Write a VBA program to show the fabrication of the butterfly spread composed of a strangle and straddle. Assume the following parameters:

S(0) = 100; T = 1; r = 8%; σ = 30%; Spread = 5%

Plot the straddle and strangle payoff along with the payoff of the butterfly spread. Repeat the above calculation for the short position in butterfly spread.

Reference no: EM131697046

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