Chapter 06 · Section 6.1

Short Butterfly Spread - Puts or Calls

Was this built using puts or calls?

a) Puts.
• b) Calls.
  Yes. The spread shown above was constructed by using 1 short call at a low exercise price, two long calls at a medium exercise price and 1 short call at a high exercise price. Continue
  c) Both Puts and Calls.

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