(b) A trader creates a long butterfly spread from options with strike prices $60, $65, and $70 by trading a total of 400 options. The options are worth $11, $14, and $18. What is the maximum net loss (after the cost of the options is taken into account)? Explain your answer in detail.
I’ve almost done but not sure whether im doing it right. would like to compare and contrast. Thank you.
