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An investor longs 1 call options with strike at K1, shorts 2 call options with strike...

An investor longs 1 call options with strike at K1, shorts 2 call options with strike at K2, and longs a call options with strike at K3. Given K1<K2<K3, please draw the payoff patter of these positions

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An investor longs 1 call options with strike at K1, shorts 2 call options with strike at K2, and longs a call options with strike at K3. Given K1<K2<K3.

This is a call butterfly.

Screenshot with formulas

jeff jeffy answered 2 years ago
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