Three-month European put options with strike prices of $50, $55 and $60 cost $2, $4 and $7 respectively.
i) What is the maximum gain when a butterfly spread is created from the put options? _ _ _ _ _ _
ii) What is the maximum loss when a butterfly spread is created from the put options? _ _ _ _ _ _
iii) For what two values of the stock price in three months does the holder of the butterfly spread break even with a profit of zero? _ _ _ _ _ _ _ and _ _ _ _ _ _ _

Question

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The Answer of Three-month European put options with strike prices of $50, $55 and $60 cost $2, $4 and $7 respectively.
i) What is the maximum gain when a butterfly spread is created from the put options? _ _ _ _ _ _
ii) What is the maximum loss when a butterfly spread is created from the put options? _ _ _ _ _ _
iii) For what two values of the stock price in three months does the holder of the butterfly spread break even with a profit of zero? _ _ _ _ _ _ _ and _ _ _ _ _ _ _

Three-Month European Put Options with Strike Prices of $50, $55