The trader as function of the stock price at expiration

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Reference no: EM131962540

Three put options on a stock have the same expiration date and strike prices of $55, $60, and $65. The option prices are $2, $5, and $9, respectively. A trader creates a reverse butterfly spread by selling one 55-put and one 60-put, and buying two 55-puts. Plot the detailed profit graph of the trader as a function of the stock price at expiration.

Reference no: EM131962540

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